Grow your business
4 reasons to start a 401(k) today
Keep your business moving forward by offering a low-cost retirement plan.
Many businesses have been forced to rethink the products they offer, how they serve their customers and what it means to be part of a team. And employees are leaning into some of the new realities of work — virtual, contactless or spatially distanced.
This is the time to keep building on your progress. As your business moves ahead in a changing marketplace, you have an opportunity to strengthen your relationship with your most valuable asset — your employees. A 401(k) plan shows that you’re invested in your team’s long-term success.
Here are four reasons why now is a great time to offer a 401(k) at your company.
1. Talent matters more than ever
Creativity and efficiency are huge competitive advantages. The knowledge and experience that key employees bring to the table are exactly what your business needs to keep moving forward. It’s more important than ever to invest in people who understand your business, have ideas for growth and can jump in to get things done.
2. You can be a leader — for your employees and your industry
Benefits are important to high performers, especially as they start families or begin to think about retirement. The fact is, employees need help saving for retirement, and they’re looking to their employer for guidance. According to a recent survey, 76% of employees believe their employer has some responsibility to help them save for retirement, and 79% want encouragement to save for retirement.1
As a business owner, you know how hard it is to retain talent. A 401(k) plan can help you stand out, especially during challenging economic times. In fact, 82% of employers identified that retaining quality employees was an important goal for their retirement plan.2
Including in a 401(k) plan as a benefit can make a big difference in the lives of employees. A survey found that employees are 45% more confident about their retirement when an employer offers a defined contribution plan.3
3. Retirement plan costs are going down
Overall, total retirement plan costs have declined from 2.31% to 2.23% since 2015, dropping slightly in each of the subsequent four years.4 For example, the new Everyday 401(k) by J.P. MorganSM starts at $75 per month plus $5 per month per employee. That means you can offer a team of five a retirement plan for as little as $100 per month.
When you factor in tax credits currently offered by the U.S. government, your costs can go even lower. Right now, a business can receive up to $5,000 per year in tax credits for the first three years after starting a 401(k).5
4. It’s easy to get started
Everyday 401(k) offers simple solutions that allow you to set up your 401(k) online by selecting from ready-to-use plans. You also have the option to customize the plan even further to suit your needs.
Learn more about the Everyday 401(k) by J.P. Morgan
You can sign up for an Everyday 401(k) by J.P. Morgan plan online. Get started today.
Everyday 401(k) by J.P. Morgan is not an offering of JPMorgan Chase Bank, NA; clients will be directed to J.P. Morgan Asset Management, an affiliate.
This is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. JPMorgan Chase & Co. and its affiliates do not provide tax, legal or accounting advice. This material is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your personal tax, legal and accounting advisors for advice before engaging in any transaction.
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For informational / educational purposes only: The views expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone and are not intended as specific advice / recommendations for any individual. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.
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