Category: Retirement Trends & News

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Inflation is a topic that has been widely discussed in recent times, and its impact on retirement planning cannot be overlooked, especially for small business owners. Planning for retirement involves ensuring that there will be enough funds to cover expenses and maintain a comfortable lifestyle in the future. Understanding the effects of inflation and how to navigate them is crucial for effective retirement planning. In this article, we will explore the impacts of inflation on retirement and provide strategies to help small business owners and their employees prepare for it.

What is Inflation?

Inflation refers to the persistent increase in the general price level of goods and services over time. As prices rise, the purchasing power of money decreases, meaning that the same amount of currency can buy fewer goods or services. Inflation is influenced by various factors, including changes in supply and demand, government policies, and economic growth rates. It is an inherent characteristic of most economies and has a direct impact on people’s financial well-being.

The Impact of Inflation on Your 401(k)

Inflation poses significant challenges for retirees, as it erodes the purchasing power of their fixed incomes over time. Many retirees rely on fixed income sources such as pensions or annuities to sustain their lifestyle during retirement. However, as prices rise due to inflation, the value of these fixed incomes diminishes. This can lead to a gradual decline in the standard of living, making it essential to account for inflation when planning for retirement.

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Planning for Inflation in Retirement

When setting up a small business 401(k) plan, it is important to consider the impact of future inflation rates. While it is difficult to predict inflation with absolute certainty, historical data and economic indicators can provide some guidance. Consulting with a plan advisor or a financial advisor who specializes in retirement planning can help develop a personalized strategy that takes into account factors such as inflation, longevity, and individual goals.

Strategies for Inflation-Proof Retirement

While it is impossible to completely avoid the impacts of inflation, there are strategies that can help mitigate its effects on retirement savings. Consider the following strategies when planning for inflation:

  1. Contribute the Maximum Amount: Take advantage of the maximum allowable contribution limits to your retirement accounts. These limits increase annually to keep up with inflation. For example, in 2023, the maximum contribution to a 401(k) rose to $22,500, with an additional $7,500 in catch-up contributions for individuals age 50 and older.
  2. Employer Match: If your small business offers an employer match for employee contributions to the 401(k) plan, encourage employees to take full advantage of it. An employer match is essentially free money that can significantly boost retirement savings. And don’t forget that as the employer, you can contribute to your own retirement this way – up to the IRS limit of $66,000 in total for 2023!
  3. Budget for Rising Healthcare Costs: Healthcare costs may rise faster than the general inflation rate. It is important to account for these expenses when planning for retirement and ensure that sufficient funds are allocated to cover future healthcare needs.
  4. Regularly Monitor and Review Your Plan: Keep a close eye on your small business 401(k) plan and make necessary adjustments as needed as your business needs and company change. Stay informed about economic trends, investment performance, and changes in regulations that may impact retirement savings.
  5. Diversify Investments: Spreading investments across different asset classes, such as stocks, bonds, and real estate, can help provide a hedge against inflation. Each asset class may react differently to inflationary pressures, reducing the overall risk to the portfolio.
  6. Adjust Asset Allocation: Evaluate your asset allocation based on risk tolerance and retirement timeline. If you are a small business owner offering a 401(k) plan, consider providing options that align with your employees’ retirement timelines or offer monitoring by investment experts who have fiduciary responsibilities.

By implementing these strategies and staying proactive in your retirement planning, you can better prepare yourself and your employees for the impact of inflation. It is important to work with financial professionals who can provide guidance tailored to your specific circumstances and help ensure that your retirement plan is equipped to withstand the challenges posed by inflation.

In conclusion, small business owners need to consider the impact of inflation on retirement planning. By understanding inflation and its effects, and implementing appropriate strategies, it is possible to mitigate the erosion of purchasing power and build a retirement nest egg that can withstand the test of time. Stay informed, seek professional advice, and regularly review your retirement plan to ensure that you and your employees are well-prepared for the future.


Ubiquity is not a registered investment advisor, and the information provided herein should not be considered legal or tax advice. We recommend consulting with your financial planner, attorney, and/or tax advisor for personalized advice. 

Retirement planning has been evolving over the years. In the past, retirement planning was primarily about saving money in a 401(k) or IRA. However, with the emergence of technology and the changing demographics of the workforce, retirement planning is taking on a new form. In this article, we will explore the trends and innovations that are shaping the future of retirement planning.

Importance of Retirement Planning

Regardless of whether you’re a small business owner, a freelancer, or an employee, planning for retirement is crucial. It ensures that you have enough money to cover your living expenses and healthcare costs in the future. Retirement planning allows you to live the lifestyle you desire and pursue your passions without worrying about financial constraints.

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The Future of Retirement Planning

As we look ahead, we can expect to see more innovation and personalization in retirement planning. Here are some trends that are shaping the future:

  1. Personalized Retirement Plans: Traditional retirement plans often take a one-size-fits-all approach. However, the future of retirement planning lies in personalized plans. These plans will consider individual circumstances such as age, health status, and financial goals to help individuals save and invest according to their unique needs. For small business owners, choosing the right 401(k) plan for your employees can also provide a level of personalization and support.
  2. Increased Use of Technology: Technology will play a significant role in making retirement planning more accessible, efficient, and cost-effective. With the advancements in financial technology, individuals will have access to tools and platforms that enable them to monitor their retirement savings, track their expenses, and make informed investment decisions. For small business owners, working with a low-cost, flat-fee1 provider that utilizes proprietary technology can ensure that your small business 401(k) plan is optimized for success.
  3. Robo-Advisors: Robo-advisors are automated investment platforms that use algorithms to provide personalized investment advice and manage portfolios. These platforms will become more prevalent in retirement planning, offering individuals a convenient and cost-effective way to manage their investments. Robo-advisors can help individuals make informed investment decisions based on their risk tolerance, goals, and time horizon.
  4. Impact Investing: As people become more conscious of the impact their investments have on society and the environment, impact investing will gain popularity. Impact investing allows individuals to align their investments with their values by investing in companies and organizations that make a positive impact on society. This trend will give retirement savers an opportunity to make a difference while growing their wealth.
  5. Longevity Planning: With increasing life expectancies, longevity planning will become more important. Longevity planning involves creating a financial plan that accounts for the possibility of living a longer life. Individuals will need to consider factors such as healthcare costs, long-term care, and estate planning. Small business owners should also factor in longevity planning when designing retirement benefits for their employees, as women tend to live longer than men on average.

The future of retirement planning is marked by innovation and personalization. Technology will play a crucial role in making retirement planning more accessible and efficient.

Personalized plans, robo-advisors, impact investing, and longevity planning are some of the trends to watch. As a small business owner, staying informed about these trends will help you design effective retirement plans for yourself and your employees, ensuring a secure and prosperous future.


1 Decimal, Inc. charges flat fees for recordkeeping and administrative services. Third-party service providers may assess asset-based fees to customers. We advise Plan Sponsors to review all service agreements with providers, such as investment advisors, custodians, and broker-dealers, to evaluate the total cost of the plan. 

Ubiquity is not a registered investment advisor, and the information provided herein should not be considered legal or tax advice. We recommend consulting with your financial planner, attorney, and/or tax advisor for personalized advice. 

Retirement can be a time to kick back and enjoy life for many Americans, but it also requires some serious planning, especially when it comes to money. With people living longer and healthcare costs on the rise, having a solid source of income during your golden years is crucial. However, figuring out the ins and outs of retirement income can be a bit overwhelming, so let’s break it down.

Getting to Know Retirement Income Basics

Let’s start with the basics. For retirement planning, the focus is money. You’ll need income even once you are no longer employed, so think about Social Security, pensions, savings, and investments. Each one has its own perks and drawbacks, so it’s important to weigh them against your own needs and preferences.

  • Social Security Benefits: This is like the backbone of retirement income for many folks. Your monthly payments are based on how much you earned during your working years, and you can start collecting them as early as age 62. The longer you wait, though, the bigger the payments will be.

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  • Pensions: For many of us, the pension is a figment of the past. But if you’re lucky enough to have one, it’s a steady stream of income provided by your employer in your retirement. The amount you receive depends on your salary and years of service. Very few employers offer pensions, so keep that in mind.
  • Personal Savings: This is all about the money you’ve squirreled away for retirement in accounts like 401(k)s and IRAs. It gives you more control and flexibility, but you’ll need to plan and manage it carefully.
  • Investments: These typically include stocks, bonds, ETFs, and mutual funds. These can potentially give you a nice boost in retirement income, but they come with a bit more risk compared to other sources.

Creating Your Retirement Income Plan

Now that you’ve got the lowdown on retirement income sources, it’s time to put together a plan. Here are some friendly tips to help you out:

  • Set Realistic Goals: Dream big, but also be realistic. Consider your lifestyle and potential longevity. You may need to plan for future expenses such as medical bills or assistance with daily activities.
  • Maximize Social Security Benefits: If you want to squeeze every penny out of your Social Security benefits, consider waiting until age 70 to start collecting. That way, you’ll get the highest monthly payment possible.
  • Diversify Your Income: Don’t put all your eggs in one basket. Combining Social Security benefits, pensions, personal savings, and investments can give you a more reliable and diverse income stream.
  • Have a Withdrawal Strategy: When it’s time to start using your retirement funds, be strategic. Consider things like taxes and required minimum distributions when deciding how much to withdraw from your accounts.
  • Regularly Review Your Plan: Life changes, and so do your needs. Make it a habit to review your retirement income plan regularly — annually, at a minimum. And if you need some help, don’t hesitate to work with a financial advisor who can guide you along the way.

Avoid These Retirement Income Mistakes

We all make mistakes, but let’s try to avoid these common ones when it comes to retirement income:

  • Overreliance on One Source: Putting all your eggs in one retirement income basket can be risky. Spread it out a bit to ensure a more stable income during your golden years.
  • Underestimating Expenses: Don’t forget the details of the costs of retirement. Factor in everything from healthcare to long-term care needs, and even consider inflation.
  • Forgetting About Taxes: Ah, taxes, the ever-present friend. Make sure to plan for them! Failing to do so can lead to unexpected tax bills that eat into your savings. Develop a tax-efficient withdrawal strategy and keep those dollars in your pocket.
  • Ignoring Inflation: Inflation is like that sneaky friend who steals your purchasing power. Don’t ignore it! Look into investments like Treasury Inflation-Protected Securities (TIPS) that can help protect you against rising prices.
  • Neglecting to Adjust Your Plan: As time goes on, your needs and goals may change. Make sure to revisit and adjust your retirement income plan as necessary. Flexibility is key!

By understanding the basics, creating a solid plan, and avoiding common mistakes, you’ll be well on your way to a comfy retirement. Remember, retirement planning is important, but it doesn’t have to be stressful. Cheers to your future and the adventures that await you!

55 million American workers—more than 40% of full-time, private-sector employees—don’t have access to a workplace retirement savings plan. As very few employers offer pensions and Social Security is drying up, with funds expected to be depleted as soon as 2035, the responsibility for saving falls more on the individual than ever before.

Automatic enrollment is a retirement plan feature that enables employers to admit new participants into the plan as soon as they are eligible to participate. Instead of the traditional method of waiting for the participant to meet eligibility requirements and then enrolling manually (or not – many eligible employees procrastinate or forget), this lets employers add new eligible participants quickly and easily.

But why is this so great?

The #1 most significant element to impact a plan balance is the contribution rate.  

Not investments, not management. Simply contributing to a retirement plan makes all the difference, and we designed our 401(k) plan options with this in mind. Here are three compelling reasons why small business owners should embrace the ease that automatic enrollment options bring to your 401(k) plan:

1. Auto-enrollment makes saving easy for employees

Although a 401(k) plan is the second-most popular employee benefit after health insurance, only a fraction of employees actually participate because they believe that enrollment is complicated.

But a plan with the auto-enroll feature removes that complication and gets employees the benefit they want as soon as they’re eligible to enter the plan without the hassle of completing forms. They can start saving for retirement and accumulating earnings on those savings sooner, which means more money for their retirement!

Employees can always opt out but using auto-enrollment has shown to double or even triple the rate of participation, particularly among younger employees and those earning less than $30,000.

2. Auto-enrollment helps employers attract and retain talent

Staying competitive in the job market is vital in today’s economy. It is becoming ever more important to attract and retain employees—and offering free snacks or a ping-pong table is not going to cut it. Instead, salary, healthcare insurance, and a retirement plan are the top three most critical elements job seekers consider.

Giving your employees a way to save for their retirement is a cost-effective and easy way to attract and retain talent and maintain an edge over the competition.

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3. Employers whose plans feature auto-enrollment save on taxes

All employers who open a new 401(k) plan may be eligible for substantial tax credits. You can qualify for up to $15,000 in credits just for opening a new 401(k) plan.

And when you add automatic enrollment, you save even more. This one feature can qualify you for a tax credit worth $500 per year for the first three years of the plan.

These tax credits for your business—a total of up to $16,500—can help small business owners like you save for your own retirements.

A few things to remember:

Ubiquity 401(k) plans offer the option of auto-enrollment with or without auto-escalation (i.e., to have their savings amount increase automatically). Participants can opt out of auto-enrollment at any time to:

  • Change their contribution amount
  • Make Roth contributions (if available in the plan)
  • Opt out of participating in the plan altogether

All contributions made through auto-enrollment remain in the participant’s account even if they opt out within the first 90 days. Once a participant opts out of auto-enrollment, they cannot opt back into having their contribution amount(s) increase automatically if auto-escalation is included in the plan; however, they can change their savings amount at any time.

To speak with a retirement expert on which retirement plan is right for your small business, reach out to Ubiquity today.



1 Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for ordinary and necessary costs of starting a 401(k) plan. IRS’ qualifying factors are: you had 100 or fewer employees who received at least $5,000 in compensation from you in the preceding year, you had at least one participant who was a non-highly compensated employee (NHCE) and in the three tax years before the first year you’re eligible for the credit, your employees were substantially the same employees who received contributions or accrued benefits in another plan sponsored by you, a member of a controlled group that includes you, or a predecessor of either. Those plans with automatic enrollment can claim a tax credit of $500 per year for a 3-year taxable period.

Ubiquity is not a registered investment advisor, and no portion of the material herein should be construed as legal or tax advice. Please consult with your financial planner, attorney and/or tax advisor for advice.


If you’ve held off on providing a 401(k) plan to your employees in the past due to startup expenses, then it’s time to look into the SECURE Act tax credit. As of January 1, 2020, small business 401(k)s are eligible for a tax credit that offsets the cost of plan setup and administration for the first three years.

As a small business 401(k) provider, the experts at Ubiquity will provide all the information you need to offer a new retirement plan at a low, fixed cost.

Step 1: Determine your SECURE Act eligibility.

For SECURE Act 2022 eligibility, you must:

  • Have less than 100 employees who receive $5,000+ per year in compensation.
  • Have at least one plan participant who is a non-highly compensated employee.
  • Not have had a 401(k) or other qualifying retirement plan within the past 3 years.

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Step 2: Set up your small business 401(k) plan.

Next, you’ll need to work with a small business 401(k) plan provider to set up your plan. You’ll need to create a plan document that complies with IRS Code and outlines all the details of your retirement plan. You’ll also need a trust to hold the plan assets and a broker to help you select funds and execute the investments.

Over the years, your 401(k) administrator will help you maintain 401(k) records, enroll new employees, track employee deductions, provide information to plan participants, and keep your plan in compliance with the law.

Ideally, you will choose a low-cost 401(k) provider that focuses on small business clientele and charges a flat fee for service. Administrative costs can vary considerably, with some providers charging per-person fees and assets under management fees — expenses that grow along with the size of your plan. Alternatively, Ubiquity provides flat-fee plans whose cost will never rise, no matter how much your savings grow.

Step 3: Claim your SECURE Act credit.

When you file your taxes, you’ll need to file IRS Form 8881 to claim your startup tax credit. Taking this simple step can qualify you for a tax credit worth $500 to $5,000, put toward up to 50% of your 401(k) setup and administration expenses. If you choose the automatic enrollment feature, you qualify for an additional $500 per year, dollar for dollar.

These credits can be applied for the first three years of your new plan. In total, you can get up to $16,500 in free money for your business just for starting a retirement savings plan, which can help you save more for your own retirement and make your company more competitive in the job market.

Keep in mind that even after the first three years, you’ll be able to write off any non-elective or matching contributions to reduce your company’s taxable income. What’s more, any money put into your own 401(k) will reduce your personal taxable income. The saved money will gain compounding interest over the years, helping you to feel more financially secure in your retirement.

Questions about 401(k) retirement plans for your small business? Contact Ubiquity today.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was the first major update to retirement plans in more than a decade.

Certain provisions already debuted, but one of the most significant changes — expansion of eligibility to participate in 401(k) plans – went into effect on January 1, 2021. Wondering what these changes are and what they mean for your small business this year? As a leading small business 401(k) administrator, Ubiquity is here to clarify matters.

Who Is Eligible to Participate in 401(k) Plans, Under the SECURE Act?

The 401(k) retirement savings vehicle is no longer just for long-term, full-time employees working more than 1,000 hours. Under Section 112 of the SECURE Act, eligibility expands to workers who:

  • Are at least 21 years old by the last day of the 401(k) plan year
  • Work part-time for at least 500 hours per year, over the past three consecutive years.

When calculating whether or not an employee has worked “at least 500 hours,” plan sponsors are not required to count before January 1, 2021. So, while you have to start tallying up the hours your part-time workers are putting in starting this year, you may not have to formally enroll these workers into your 401(k) until the 2024 plan year.

The SECURE Act Eligibility Update’s Impact on Nondiscrimination and Top-Heavy Testing

The SECURE Act change will add a layer of administrative complexity, as plan sponsors develop new systems for tracking and reviewing hours for part-time employees over the one to three-year tracking periods.

Sponsors will need to consider whether part-time employees will also be eligible for employer contributions and whether to set a vesting schedule. If a long-term, part-time employee becomes eligible for employer contributions, each of the years they were employed and worked 500 hours (even before January 1, 2021) must count for vesting.

For employers who are subject to nondiscrimination and top-heavy testing, adding long-term, part-time employees can skew the results. The SECURE Act allows a testing exclusion for employees working 500 hours a year, but employees working 1,000 or more hours in one year must be included. If, when you start your plan, it contains more than 100 participants, you will require an independent qualified auditors report to accompany your annual Form 5500. If you’re a growing business that has been considered a small plan in the previous year, you will not be audited until you hit 120 participants.

If you are worried about your ability to pass these annual tests, you may want to consider contacting Ubiquity about adding a Safe Harbor provision to your plan for hassle-free administration.

Eligibility Questions to Consider

Plan sponsors may want to consider this short list of questions to ensure they are prepared for the change:

  • Is the hours of service tracking system updated as of January 1 to stay compliant?
  • Have you updated your plan administration documents to note the new eligibility criteria?
  • Do you wish to expand eligibility for matching or non-elective contributions to these employees?
  • Do you need to update new-hire and recruiting materials to ensure plan participation?

What’s Next?

The House Ways and Means Committee introduced SECURE Act 2.0, otherwise known as the Securing a Strong Retirement Act bill, on October 27, 2020. If passed, this bipartisan bill would, among other things, reduce the 12-month measurement period for long-term, part-time employees from three years to two years. Simply put, don’t plan on making the changes in 2024; prepare your business to increase plan enrollment today.

If you think now is the right time to start your 401(k) retirement savings plan, or have questions about switching providers, call Ubiquity, a leader in setting up and administering low-cost 401(k) plans for small businesses and solopreneurs.

2020 Changes to RMD

Siân Killingsworth / 30 Jul 2020 / Retirement Trends & News

Older business man using computer

A 401(k) is an optimal tool for reducing your tax liability, but you can’t dodge payment to Uncle Sam forever. Required Minimum Distribution rules ensure that people do not accumulate wealth in tax-free retirement savings accounts to leave as an inheritance.

Once employees with 401(k) or IRA accounts reach a certain age, they must withdraw a minimum required amount from their funds. The withdrawal is generally included on income tax forms, with the exception of a Roth account that was already taxed when first contributed to the account. Your RMD is calculated by your retirement account balance as of December 31 of last year, divided by your Life Expectancy Factor.

In 2019, U.S. workers had to take their RMDs at age 70.5, but much has changed amid the global pandemic crisis. The Setting Every Community up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act both include provisions affecting RMDs in 2020.

Continue reading or contact your 401(k) plan provider with specific questions about 2020 RMD changes.

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The starting age for RMDs increased from 70.5 to 72 – but not until 2021.

  • In late 2019, the SECURE Act increased the age for RMDs to 72.
  • In March 2020, the CARES Act waived RMDs altogether for the 2020 calendar year.
  • If you turned 70.5 by the end of 2019, resume taking your regularly scheduled RMDs in 2021.
  • If you were under 70.5 by the end of 2019, you don’t have to take your RMD until April 1 after you’re 72.

Those over 70.5 can undo RMDs already taken this year if they are eligible for a rollover.

  • RMDs can be rolled back into the retirement account if you have received the funds within 60 days.
  • RMDs must be directly rolled, but can be taken even if you have completed a rollover within the year.
  • Non-spouse beneficiaries can undo RMDs already taken as long as they do so by August 31, 2020.
  • Rolling the money back means you do not have to include these amounts on your 2020 income taxes.

Beneficiaries can take the year off RMDs

Prior to 2020, inheriting an IRA or 401(k) account meant taking RMDs based on one’s own life expectancy. This was great news for young heirs who were able to stretch tax deferral for decades. However, this changed with the SECURE Act.

  • Heirs must now draw down the inherited account within 10 years if inherited in 2020 or later.
  • Beneficiaries can skip RMDs for 2020, but they may want to take them if they need the cash now.
  • Holding off on RMDs for a Roth account makes sense, as you accrue tax-free money for a longer time.
  • IRA beneficiaries operating under the five-year rule can take one extra year to draw down the account.

Should you take your RMD in 2020?

The question as to whether or not you should take advantage of the RMD waiver is a personal one.


  • You were planning on these distributions for your living expenses in retirement.
  • You risk getting bumped into a higher tax bracket with a higher balance and withdrawal percentage.


  • You don’t need the full amount to cover your costs, and you’d like to reduce taxable income for 2020.
  • Some of your investments have decreased in value due to the downturn, and you’d rather wait to sell.

You may also consider taking a distribution this year, but capping it so that you won’t move into a higher tax bracket or trigger steeper Medicare premiums. Whether you’d like a full annual/quarterly/monthly RMD, a partial RMD, or a deferred RMD, you’ll need to contact your Third Party Administrator to discuss your preferences.

Ubiquity is a flat-free 401(k) plan provider that can offer free, efficient, expert advice on retirement savings. Questions about retirement planning? Employers and employees alike may contact us for details.

It’s no secret that the life of a small business owner is a lot of work. Especially in situations where you only have a few employees (or none at all), you have to act like the Swiss army knife of your business––ready for anything and prepared for any situation. So, why add the hassle of having to pay for and run a retirement plan along with everything else? You might even wonder, is my business too small to for a 401(k) plan?

Here’s the scoop: A 401(k) is no longer a benefit reserved exclusively for large businesses with budgets to match.

There are budget-friendly, easy-to-use 401(k) solutions designed specifically for small businesses. Small business owners can now take advantage of the business tax benefits of a 401(k) plan and offer competitive retirement plan benefits for employees.

Not too familiar with 401(k) plans? No problem.

What is a small business 401(k)?

First things first: A 401(k) plan is a type of company retirement plan under Section 401(k) of the Internal Revenue Code. That part isn’t so important — here’s what is: A 401(k) allows you to save for retirement by putting away money on a pre-tax basis, which helps you to lower your taxable income. What’s that mean to you? It means you’ll get less of a tax bite on your annual salary in the short term, while your long-term investments grow tax-free until you’re ready to retire. Some 401(k) plan providers (including Ubiquity) also offer an after-tax (Roth) option, which means you won’t be taxed at the time you withdraw that money because you’ve already paid taxes on it.

A small business 401(k) is defined as a 401(k) plan for a company with anywhere from one to 100 employees. Here at Ubiquity, we specialize in the retirement plan needs of small and growing businesses, including owner-only and start-up businesses.If your business only employs you, your spouse or partner, and employees who would not be eligible to participate in a plan, a Single(k)® plan would your best option.

Small business 401(k) plans offer unique benefits to both business owners and their employees who participate in the plan.

Busting 401(k) Myths

Myth #1: 401(k) plans are too expensive for small businesses.

It’s true that many 401(k) plans are designed to only suit larger businesses. But the growing trend is to offer efficient, Web-based 401(k) plans that are more affordable to businesses of all shapes and sizes. Plans cost less than a daily latte, and employers have options for splitting costs with their employees.

Myth #2: 401(k) plans require an employer match.

An employer match or profit-sharing contribution is entirely optional with a 401(k). If you choose to offer this feature to your employees, it could help to boost participation. Keep in mind that employer contributions are also tax-deductible for your business.

Myth #3: Our employees won’t participate because they don’t make enough money.

There is no minimum contribution required with a 401(k). Offering an employer match can provide additional incentive for your employees to participate in the plan.

Myth #4: It’s too complicated.

Starting a 401(k) plan doesn’t have to be convoluted. With the right plan, you can get a new plan running in just a few hours of your time. And it’s easy to manage, with tools and reports available right at your fingertips.

As you are planning your retirement, it is fun to think about moving somewhere new, maybe even a beach destination.

However, it is essential to consider a variety of factors that will help you identify the best fit for you and your new phase of life. The factors workers most frequently say are important to their decision-making are affordable cost of living (71%), proximity to family and friends (54%), good weather (49%), low crime rates (49%), access to health care (43%), and recreational activities (41%).

If you think you have found the location for you, you may want to vacation there during different times of the year or spend a month or more there at a time, just to make sure you get the full perspective of a resident versus a vacationer.

Some experts also recommend that you open a bank account, have a medical appointment, or conduct other kinds of personal business in your selected location to make sure you experience the aspects of the culture and understand what will be available to you once you move there.

Several organizations routinely analyze data to identify the best places to live in retirement. Their research can help you evaluate the things that are most important to you when deciding whether you want to relocate retirement.

Best places to retire in the U.S.A.

Forbes’ annual Best Places to Retire list takes into consideration things like access to medical care, crime rates, air quality, unemployment, cost of living, and factors that can make for a fulfilling retirement, such as opportunities for volunteering and exercise. According to Forbes’ analysis, and its admitted preference for college towns, here are the 25 best places to retire in 2017 (listed alphabetically).

  • Athens, Georgia
  • Bella Vista, Arkansas
  • Bethlehem, Pennsylvania
  • Boise, Idaho
  • Brevard, North Carolina
  • Clemson, South Carolina
  • Colorado Springs, Colorado
  • Fargo North Dakota
  • Grand Prairie, Texas
  • Green Valley, Arizona
  • Harrisonburg, Virginia
  • Iowa City, Iowa
  • Jefferson City, Missouri
  • Lawrence, Kansas
  • Lewiston, Maine
  • Lincoln, Nebraska
  • Maryville, Tennessee
  • Ocean Pines, Maryland
  • Peoria, Arizona
  • Port Charlotte, Florida
  • San Marcos, Texas
  • Savannah, Georgia
  • Summerville, South Carolina
  • The Villages, Florida
  • Wenatchee, Washington

Best cities to retire

If big cities are more your style, you might want to look at the Milken Institute’s Best Cities For Successful Aging report.

This study considers nine factors that make the “best” city for retirees: general livability, healthcare, wellness, financial security, education, transportation and convenience, employment opportunities, living arrangements and community engagement.

It has also found that cities with colleges rank higher on quality-of-life factors that affect older adults, including economic strength and recreation. Here are Milken’s top 10 big cities for aging successfully.3

  1. Provo-Orem, Utah
  2. Madison, Wisconsin
  3. Durham-Chapel Hill, North Carolina
  4. Salt Lake City, Utah
  5. Des Moines-West Des Moines, Iowa
  6. Austin-Round Rock, Texas
  7. Omaha-Council Bluffs, Nebraska-Iowa
  8. Jackson, Mississippi
  9. Boston-Cambridge-Newton, Massachusetts-New Hampshire
  10. San Francisco-Oakland-Hayward, California

If you are more comfortable in a smaller setting, those have been ranked too. The top 10 best small cities tend to have moderate living costs, quality healthcare, educational facilities, and a community feel.3

  1. Iowa City, Iowa
  2. Manhattan, Kansas
  3. Ames, Iowa
  4. Columbia, Missouri
  5. Sioux Falls, South Dakota
  6. Ann Arbor, Michigan
  7. Ithaca, New York
  8. Lawrence, Kansas
  9. Logan, Utah-Idaho
  10. Fairbanks, Alaska

How livable is your hometown?

Ever wondered about how your hometown ranks on the list of great places to live? AARP’s Livability Index will tell you. Follow this link and type in your address or town name to find out how livable your community is.

Best warm places to retire

Even with all the conveniences that cities have to offer, many people dream of living by the beach or in a warmer climate. AARP researchers found ten great places to retire – all of which boast at least 250 days of sunshine each year. Other factors considered include cost of living, the range of activities for retirees, and a low crime rate.4

  1. Asheville, North Carolina
  2. Grand Junction, Colorado
  3. Sarasota, Florida
  4. San Diego, California
  5. Las Cruces, New Mexico
  6. San Luis Obispo, California
  7. St. George, Utah
  8. Santa Fe, New Mexico
  9. Bend, Oregon
  10. Fort Worth, Texas

Best places in the world to retire

If you are thinking more globally, International Living’s Annual Global Retirement Index measures factors that are important to those who are considering a move to another country, including ease of buying property, ease of attaining a visa, cost of living, entertainment, healthcare, climate, and governance. Here are the top 10 international locations for retirees in 2018.

  1. Costa Rica
  2. Mexico
  3. Panama
  4. Ecuador
  5. Malaysia
  6. Columbia
  7. Portugal
  8. Nicaragua
  9. Spain
  10. Peru

Learn more

Despite some locations showing up on multiple lists (Lawrence, Kansas, and Iowa City, Iowa), researchers have identified places all over the U.S. and the world as great places for fulfilling the needs and desires of retirees. Wherever you decide to live, you will need retirement income to support your lifestyle.

If you’re a small business owner and need a 401(k) plan for yourself and your company, only Ubiquity offers flat-fee plans plus free expert advice. We’ll fully customize your 401(k) to meet the specific needs of your small business.

Check out our cost-effective, plan solutions

Resources for best places to retire

  1. Transamerica Center for Retirement Studies: Wishful Thinking or Within Reach? Three Generations Prepare for “Retirement,” December 2017
  2. Milken Institute Center for the Future of Aging: Best Cities for Successful Aging
  3. AARP: 10 Great Sunny Places to Retire
  4. International Living: The World’s Best Places to Retire in 2018

Participating in your first retirement savings plan can seem overwhelming and may stir up a whirlwind of questions. Remember: even though getting started can be difficult, you are taking an important step in investing for your future.

As you navigate your company’s retirement benefits, talking with your Human Resources (HR) person, department, or whoever is managing your company’s plan, is your best place to start.

For some insight on how your HR department can help you get your savings plan in gear, we sat down with our own HR people here at Ubiquity Retirement + Savings.

Q: Does being overwhelmed prevent individuals from enrolling in retirement plans? Are there any other reasons why people don’t enroll?

A: It’s not necessarily that employees feel overwhelmed with choices, but rather, depending on their age, they feel overwhelmed with their financial situation and obligations. Employees just now entering the workforce have always heard they need to save for retirement. But because that date is so far in the future, many don’t feel it’s the proper savings vehicle, especially when they may have student loans to pay off, for example.

It’s hard to conceptualize an event that is 30 to 40 years in the future. For people in the middle of their careers, it’s almost a no-brainer that you must establish retirement savings. Depending on your financial situation, saving any amount from your paycheck can be difficult. Still, most people who are GenX and Y know they need to open a 401(k) sooner than later. Probably the biggest reason for not enrolling is the lack of extra funds. If someone is living paycheck to paycheck, there isn’t much to save.

Q: What’s the best way for employees to learn their options for retirement savings vehicles at their company?

A: The best way would be to ask their HR department, or if they are at a small business, to approach the owner or person responsible for payroll and benefits. At companies with dedicated HR departments, it’s important to continually remind employees of this benefit. Having a “benefits fair” is a great way to educate and publicize the options available to employees. If an employee learns there isn’t a retirement plan available, I would encourage them to educate their HR department or company owner on how these plans benefit the company. Retirement plans attract and retain talent, and the associated tax savings almost entirely cover any additional costs.

Q: If an employee is new to a company, how should they approach HR to inquire about retirement benefits?

A: A good HR practice is always to have information on benefits available to employees and to go over this at orientation or in new hire meeting. A lot of established companies have defined new hire orientations and a section on benefits is part of that.

However, even at a smaller firm, you still have an onboarding meeting where you have to complete administrative paperwork. If an employee doesn’t notice any information on retirement when completing this new hire paperwork, that would be the time to ask.

Q: If an employee is not currently enrolled in a retirement savings plan, how can they get started?

A: First, look at your paycheck and current financial obligations to determine what percentage of your income you can save. Then, speak to your plan sponsor and find out when you can start contributing. It’s important to remember that it’s not a direct calculation where if you decide to save $200 per paycheck your net check is automatically $200 less. With the tax benefit, you are getting taxed less, so your net paycheck might only be $150 less.

Q: Why are company match programs especially important when choosing an employer?

A: Two words: FREE MONEY! That match is so important because it’s literally free money that is going into your savings vehicle. At a minimum, you should always contribute as much as your company will match, otherwise you are leaving cash on the table.

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San Francisco, CA 94104
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© 2023 Ubiquity Retirement + Savings
Privacy Policy
Do not sell my info
44 Montgomery Street, Suite 300
San Francisco, CA 94104
Support: 855.401.4357

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