From
Your Perspective:
Small business retirement plans
Small business retirement
plans
When you’re self-employed or own a small business, retirement planning presents a different set of challenges than it does if you work for someone else. Of course, you confront many of the same issues: how much you'll need to live comfortably in retirement, what you can afford to put away now, and how to choose the right investments to achieve your financial goals.
But when you’re the boss, it’s your responsibility to decide whether there will be a retirement plan at all, and, if there is, which type you’ll use. If you have employees, the decisions can be even more complex. There are even more plans to choose from, and some commit you to annual contributions. Another factor to weigh is that the best plan for a company with a number of people on staff isn’t necessarily the best choice if you’re the only employee.
If you have concerns about the cost and complexity of setting up an official plan, you're not alone. According to the Department of Labor, the majority of small businesses in the U.S. don't offer retirement plans.
