Small Business Retirement Plans Mean Big Opportunites for You

If you’re like many financial advisors, you might feel like small business retirement plans aren’t worth your time. However, recent legislative changes are creating valuable opportunities that you do not want to miss out on.

Many workers at small companies nationwide do not currently have a retirement savings account. And, to prepare people for life after retirement, several states have implemented a mandated retirement program, requiring employers to offer Individual Retirement Accounts, (IRAs) to all their eligible employees.

Demand for small business retirement plans is expected to boom, and as a seasoned financial advisor, your business-owner clients need you to help them select the best plan for their needs. Let’s explore the factors that make small business retirement plans worth your attention.

Expand your client base and deepen existing relationships

The state mandate requiring all companies to offer retirement accounts to employees has caused the demand for retirement plans to skyrocket. To outshine the competition, you’ll need to bring more than the bare minimum to the table: starting with knowledge. Here are some aspects that we think more business owners should know about.

The increased demand for retirement plans puts you in a perfect position to sell more plans to more companies. Plus, smaller companies are less likely to have large administrative teams that can manage finances and plan details for them. In light of this, small companies may also be inclined to purchase your CPA or insurance services as well. This could mean major business growth opportunities for you.

Business owners in your network may also see a greater return on their investment in a qualified retirement plan because, unlike state-sponsored IRAs, small business retirement plans can come with major tax breaks for your clients—due to SECURE Act 2.0. Some of the specific tax credits your clients may want to take advantage of include the startup credit, an auto-enrollment credit, and an employer contribution credit. For small clients, even small credits can go a long way towards solidifying a relationship with their trusted financial advisor, helping drive repeated business.

Leverage a partnership with a record keeper (like ePlan Services)

With ePlan Services’ small business retirement plans, you can empower your clients to give their employees exactly what they need.

Apart from leveraging the increased demand for small business plans to solidify existing relationships, these mandates are also creating opportunities to widen your client base through cross-selling.

As a financial advisor, your record-keeping partners need your referrals, and your business-owner clients need your retirement and financial planning services. With the state retirement plan mandate in place, you’ll have the opportunity to strengthen and grow the relationships in your professional network by providing retirement planning and financial planning services that your partners and clients can trust.

Record keepers can make it worth your while to partner with them in attracting and retaining new clients and business owners are keen to purchase an easy-to-establish retirement plan with excellent plan education and simple management tools.

A respected advisor, such as yourself, can strengthen the bond between you and your client base by offering them a retirement plan option that suits the needs of everyone participating.

Promote greater retirement plan growth

Small business retirement plans may grow faster than plans offered by larger firms because of features like auto-enrollment— eligible employees are automatically enrolled without the need for complex (and expensive) paperwork, and auto-escalation— employee contributions automatically increase over time. These features don’t just make these plans easier to sell, thanks to their convenience: employees who contribute more to their plan also maximize the fees paid out to advisors.

By providing your clients, and in turn their employees, with an ePlan Services retirement plan, equipped with transparent plan education and simple account management tools, you can help your clients and their employees feel more comfortable about their investment decisions. The more comfortable you make your clients feel, the more clients you’re likely to retain and gain.

Stay ahead of the competition

Other financial advisors have recognized the benefits of small business retirement plans. With enrollment deadlines on the horizon, time is of the essence. Don’t get left behind. Small business owners seek a simple, turnkey retirement plan solution, and you’re in a position to provide them with a retirement plan that benefits their company as well as their employees.

If all you have to offer are larger retirement plan options that make your clients feel like they’re just a number, they will go elsewhere. It’s up to you to recommend valuable options to suit your clients’ needs.

Strengthen your clients’ trust in your services by partnering with us to provide them with advantageous retirement plan solutions for their business as well as their employees.

Conclusion

Don’t fall into the trap of thinking small business retirement plans have nothing to offer you. Instead, think of them as new and profitable business opportunities for you, your clients, and plan sponsors—a win, win, win.