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Smarter Retirement Benefits Start with Flexibility

Tuesday July 1st, 2025

Estimated time to read: 1 minute

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With employee acquisition and retention top of mind, small businesses are under increasing pressure to offer competitive benefits. But for many, a 401(k) plan simply isn’t the right fit. These plans can be expensive to maintain, complex to manage and often incompatible with industries where turnover is high or margins are thin.

That leaves a large part of the market underserved—70% of small businesses offer no plan at all.

The Portable Retirement Plan (PRP), however, is transforming how small businesses offer retirement benefits. It’s a modern, affordable option designed specifically for the realities of small businesses, presenting a growing opportunity for employers, service bureaus and other advisors.

The Need for More Retirement Options

Businesses need to offer attractive benefits to retain top performers. Among employees who changed jobs last year, a higher salary wasn’t the biggest reason why they left—it was wanting better benefits. However, many small businesses can’t justify 401(k) costs or the administrative burden of offering a plan. With an increasing number of states mandating that organizations offer a retirement option to employees, more businesses will need to comply.

Employers need simpler, more affordable solutions, while service bureaus and advisors need more tools to meet client demand.

Introducing the PRP

The PRP works like a 401(k) plan, but without the complexity, cost or administrative burden of a traditional plan.

Here are a few main features of a PRP:

  • Affordable: Employers pay a flat monthly fee and avoid costly per-participant charges.
  • Fast set-up: While traditional retirement plans may take months to implement, a PRP can be up and running in minutes.
  • Worry-free compliance: No plan testing, fiduciary liability, or IRS filings.
  • Portable: When an employee changes jobs, there’s no rollover required. Savings stay with employees.

The PRP is an innovative way to offer retirement benefits, meet employee needs and comply with state retirement mandates. More choices mean more ways to serve the workforce, and more ways for employers to grow their businesses.
 

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