A Small Business Owner’s Perspective on Retirement Planning

By Johnnie Bellows

As a construction company owner in Ann Arbor, Michigan, I’ve learned that building a sustainable future requires the same careful planning and strong foundation as the structures we create. And just as every building needs strong walls to protect what’s inside, every business needs robust employee benefits to support and retain the people who help build our success. Unfortunately, when it comes to retirement security, too many of these walls are showing cracks.

A recent survey by BlackRock revealed that 90% of registered voters believe we’re in a retirement savings crisis, and only 22% feel confident about having enough money to live on through retirement. As a small business owner, these statistics hit close to home – especially considering that only 15% of private sector workers have access to pension plans.

Like many small business owners, I’ve experienced the challenges of balancing business growth with long-term financial security for me and my employees. The construction industry’s inherent uncertainty – with its ebbs and flows in project availability and workforce needs – makes this balance particularly challenging. Currently, my business maintains three full-time employees and works with various contractors depending on project demands. While we’ve achieved steady growth, competing with large corporations for skilled workers is a challenge. When potential employees can choose between a small business and a company offering comprehensive retirement benefits, the mom and pop shop often loses out. It’s a common story among small business owners – we want to provide these benefits, but the complexity and cost create yet another hurdle in attracting and retaining skilled workers.

The Employee Benefits Gap: A Business Risk

The absence of retirement benefits in small businesses creates a ripple effect that impacts both employees and employers. Our workers face the difficult reality of planning for retirement without the structured benefits that their counterparts at larger companies often take for granted. Many find themselves piecing together personal savings strategies while missing out on the advantages of employer-sponsored retirement plans – from tax benefits to employer matching contributions that can significantly boost their retirement savings.

The challenge extends beyond just hiring. Without retirement benefits, current employees may feel compelled to look elsewhere for long-term financial security, leading to higher turnover and increased training costs. This creates a costly cycle: small businesses invest in training employees who then leave for better benefits elsewhere, requiring the small business to start the process again. While I too navigate the complexities of retirement planning as a business owner, it’s clear that finding solutions for employees’ retirement security isn’t just about doing what’s right – it’s essential for building a stable, competitive business.

Looking Toward the Future

The construction industry taught me that solid foundations take time to build. The same principle applies to retirement planning. The key is starting early and being strategic. For many businesses, this means exploring state-sponsored retirement programs that are specifically designed to help small businesses provide retirement benefits without the administrative burden and costs of traditional retirement plans. These programs, which operate like Roth IRAs, make it possible for small businesses to offer retirement benefits that can help them compete with larger companies for talent. Other tools, such as the LifePath Paycheck, can be offered to not just help retirement saving, but also help plan and extend retirement spending. These types of tools alleviate the very real fear of outliving retirement savings. These options also mean having honest conversations with employees about retirement planning and helping them understand how these state-facilitated programs can put them on a path to long-term financial security.



After all, the true measure of our success isn’t just in the growth of our companies — it’s in building lasting financial security for ourselves, our employees, and our families. Just as every construction project needs a blueprint, every small business owner needs a retirement roadmap. The time to start drawing that map is now.