The small business retirement plan market is red hot, according to a new report from Corporate Insight, and the opportunities for mutual funds are expansive.
Small businesses make up about 99.7% of all employers and employ about half of the U.S. private sector workers, excluding those that work on farms. Viewed in the aggregate, it offers the financial services industry a huge opportunity, the New York consulting firm noted in its 65-page study, "The Big Business of Small Business Retirement Plans."
"Thirteen of the seventeen firms that we track offer some type of retirement plans for small businesses," said Michael Ellison, executive vice president, Corporate Insight. "Most have very similar offerings across the board with the exception of two firms who have clearly taken the time to develop innovative products to go after this rapidly growing market segment. We believe there is significant opportunity for savvy marketers to capitalize on these demographics by creating a unique selling proposition and rolling it out across the marketplace."
In addition, the Corporate Insight study offers recommendations on how to improve customer satisfaction.