Many small-business owners appear to be in a better place financially than they were during the Great Recession, according to a new study.
The Fidelity study, which was shared on BenefitsPro.com
, concluded that people are contributing significantly more money to their small-business retirement accounts than they were in 2008. Contributions have jumped up 88 percent since then, the article said.
Small-business retirement accounts considered in the research include the Simplified Employee Pension Plan (SEP IRA), Self-Employed 401(k) or Savings Incentive Match Plan for Employees (SIMPLE IRA). Fidelity examined more than 200,000 of these accounts for the study.
The results suggest that small-business owners have become confident enough with the state of business to begin thinking about and preparing for their financial future. The business owners may not be the only ones.
Fidelity’s analysis also suggests this increased optimism is shared by both employers and employees alike, with contributions to both Self-Employed 401(k) s and SIMPLE IRAs steadily increasing for five consecutive years.
“This is encouraging, because our research has consistently shown too many Americans are unprepared to live comfortably in retirement,” said Ken Hevert, vice president, Fidelity Investments.
There’s a reason many business owners turn to these small-business–oriented accounts to prepare for a more secure retirement. Discover the features
that give these retirement plans an advantage for entrepreneurs.