Running a small business is expensive, and meeting the obligations of vendors, employees, and paying yourself can make benefits like retirement savings seem too much for your expense line. We know that small business workers have the least access to retirement plans than any other employed group. There’s a solution that will now allow small business owners and their employees to save for retirement without additional administrative work or cost for the business: myRA.
We’re proud to partner with myRA, developed by the U.S. Treasury department, to help all workers and small business owners invest in their long-term future. There is no cost to open a myRA account, no fees, and no minimum account balances or contribution levels. These accounts are all ROTH IRAs, so you pay taxes on the money now. You can also invest through contributions directly from your bank account, so it’s easier than it’s ever been.
Because of compounding interest, the earlier you begin saving, the better financial position you’ll be in in the future. The Social Security Administration reports that Social Security payments make up only about 38% of Americans’ retirement income, which means if you and your workers want the flexibility to stop working, you need to establish some retirement savings.
myRA offers a savings calculator that shows how much a small contribution can earn. For example, if you can save $20 per month, in 10 years, you’ll have $2,723.
This is a benefit you can offer to your employees, even if you don’t choose to use it. Click here for a flyer for employees. By offering resources other small businesses don’t (like access to retirement accounts), you set your business apart, making your jobs more desirable and more valuable to your team members. Visit myRA’s website for more tools, information, and to get started saving today.