No 401(k) at your job? Here’s what to do

Two weeks ago I shared tips to wake up a napping 401(k) plan. But what if you work for the nearly half of U.S. companies that don’t offer a retirement plan? Don’t suffer without. You can demand better — and make it happen.

Start by learning why your employer doesn’t sponsor a retirement plan. Time commitments and high start-up costs are big hurdles, particularly for smaller firms. Managing the plan and ensuring regulatory compliance takes significant time and attention. It also comes with liability, which many firms find too risky. Plan administrators can face civil and even criminal penalties if the plan doesn’t meet regulatory and legal requirements.

The fee-time-risk triple threat may be why more than 90% of small businesses don’t offer a retirement plan, according to the Census Bureau. Or, your employer may simply not realize employees want a 401(k). Whatever the reason, identifying the roadblock is your first step to helping your boss remove it.

This can take some convincing, so plan your strategy before talking to your boss. Get buy-in from some co-workers, and find out what they want in a plan. If your bosses see broad desire for a 401(k), they have big incentives to act.

Proving 401(k)s are great for the company and staff isn’t enough. You’ll also need to show why the hurdles to having one aren’t too high. Bosses are busy, so do your homework. If they’re worried about risks, research plan providers who will share the legal responsibilities. Plan how to divide plan administration responsibilities within your company so it doesn’t all fall on one person.

If high costs are the obstacle, help your employer see expenses in more relatable terms. It’s too easy to brush off a one-time start-up fee or employer match as “too much.” But what if they spend $75 per person on a holiday shindig? The cost of offering a 401(k) plan can be comparable, with far greater benefits. What helps attract and retain the best employees: a party or a competitive 401(k)? Then too, tax savings and other benefits may offset those fees.

The time commitment is probably the easiest concern to beat. Picking a supportive plan provider will do it. They can help create a structured way to share and manage the extra work. Lack of awareness is also easy — survey your co-workers and tell your boss how many want a retirement plan. Remind your bosses they can use the plan, too. It will lower their taxes and help them build a retirement boodle — it never hurts to mention their needs, too.

Whatever your employer’s initial objection, show them the added costs, time and effort are worthwhile for them. Help them see offering a 401(k) enhances their business goals and helps them grow. They won’t lose employees to rivals with better benefits. These days, with the job market increasingly tight, it will help them attract quality new folks. A bonus: They’ll see your strategic thinking, initiative and drive, as well as your research and organizational skills. As cool new opportunities arise, maybe they’ll remember.

Once everyone is on board, offer to support the person in charge while they choose the plan provider and get everything set up. They may need someone to help. Help them research providers. Be a sounding board for ideas. Help them to develop goals for the plan. Then ensure those goals are met.

Taking this initiative on top of your regular workload may seem like too much. But it’s worth it. In addition to becoming your company’s MVP, you’ll get to start saving for retirement in a focused, tax-advantaged way. Then you, too, can benefit from all the opportunities in last week’s column. So go get ’em! The main thing really standing between you and a 401(k) is you.

Ken Fisher is the founder and executive chairman of Fisher Investments, author of 11 books, four of which were “New York Times” best-sellers, and is No. 200 on the Forbes 400 richest Americans. Follow him @KennethLFisher.

Whatever your employer’s objection, show them the added costs, time and effort are worthwhile for them.