By Jeff Herman
Looking for guidance on offering a plan to your employees or providing investment advisory services? Let’s talk.
If you own a small business and want to help your employees save for retirement, you do not have to figure out the process alone. An investment adviser can help you compare plan options, understand the costs, select investments, and explain the benefit to your employees.
Recent research from the Center for Retirement Research at Boston College found that more than 90% of large employers offer retirement plans, compared with 49% of firms with fewer than 50 employees.
While that’s expected, the research also found that many small-business owners overestimate the cost and administrative burden of offering a plan.
Employees increasingly view retirement planning as more than a payroll benefit. In Morgan Stanley at Work’s 2026 survey, 95% said retirement-planning assistance from financial professionals is important when choosing where to work, and 43% valued access to a financial adviser.
For a small-business owner, bringing an adviser into the process can make the benefit more meaningful and help the company compete for and retain employees. NFP’s 2026 U.S. Retirement Trend Report shows 84% of employees said they would consider working with an advisor if given the opportunity, and 89% said they trust employer-provided advisors. Participation and contribution rates tend to rise when employees have someone to discuss investment options with.
“I’d Expect to See a Higher Participation Rate and Higher Contribution Rate If We Had Someone to Discuss Investment Options With Our Employees.”
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Where Should a Small Business Owner Start?
1. Decide what you want the plan to accomplish
Start by identifying why you want to offer a retirement plan. You may want to:
- Help employees save for the future
- Attract and retain talented workers
- Offer a more competitive benefits package
- Build your own retirement savings
- Create a more formal compensation structure as the company grows
Your goals, number of employees, cash flow and ownership structure will help determine which plan may be appropriate.
2. Find an investment adviser who works with small businesses
Look for an adviser who understands the realities of operating a small company. The adviser should be willing to learn about your business, employees, and budget before recommending a plan.
Ask:
- How many small-business retirement plans do you serve?
- Which plan options do you typically recommend?
- How do you help employees understand the plan?
- What services are included?
- How are you compensated?
- What responsibilities will remain with me as the employer?
You should understand whether the adviser is acting as a fiduciary for the services provided and how they will address any conflicts.
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3. Compare the plan options
An adviser can help you compare options such as a 401(k), SIMPLE IRA, SEP IRA, or pooled employer plan.
Each option has different rules, contribution features, costs, and administrative responsibilities. The best plan is not necessarily the most sophisticated one. It is the plan your business can maintain, and your employees can use.
Your adviser should explain:
- Who can participate
- Whether employees can contribute
- Whether the business must contribute
- How investments are selected
- What administration is required
- How the plan can change as your business grows
4. Understand the total cost
Ask for a complete explanation of the costs, not just the adviser’s fee.
Review:
- Setup fees
- Recordkeeping fees
- Investment expenses
- Adviser compensation
- Payroll and administrative costs
- Employer matching or other contributions
- Employee education and enrollment support
Eligible small employers may qualify for tax credits related to starting a retirement plan.
The IRS says some businesses may qualify for a startup-cost credit of up to $5,000 for three years, depending on their circumstances. Ask your tax professional to determine whether your business qualifies.
5. Help employees use the benefit
Offering a plan is only the first step. Employees also need to understand how it works.
An adviser can help explain contribution rates, employer matching, investment choices, and the value of saving consistently. Enrollment meetings, educational materials, and one-on-one guidance can make the benefit easier to use.
The objective is not to make employees investment experts. It is to help them feel informed enough to participate.
6. Clarify your responsibilities
Before establishing the plan, ask what the adviser, recordkeeper, and third-party administrator will handle, and what your responsibilities will be.
The Department of Labor states that a retirement plan must have at least one named fiduciary responsible for the plan’s operation. Employers should understand who will monitor investments and fees, oversee administration, and respond to employee questions.
A good adviser will explain these responsibilities clearly and help you stay organized.
7. Focus on cash flow—not paperwork
Many business owners assume they should wait until the company is significantly more profitable before offering a retirement plan. But a more useful starting point may be determining what the business can responsibly support today, and classifying the initiative as a force multiplier for growth.
A modest plan started early can help employees begin saving, strengthen the company’s benefits package, and grow as the business becomes more profitable. An adviser can help the owner evaluate the options based on current cash flow rather than getting overwhelmed by plan mechanics.
The question is not always, “Can I afford the perfect plan?” It may be, “What retirement benefit can I responsibly offer now?”
A Practical Benefit for Growing Businesses
Bringing in an investment adviser can make it easier to offer a retirement plan to your employees. The adviser can help you evaluate your options, coordinate the process, educate your team, and provide ongoing support.
For a small-business owner, the decision is not simply about adding another benefit. It is about building a stronger company while helping employees prepare for their financial future.
The right adviser can help you take that step with greater clarity and confidence. Contact me to discuss your options.