Offering a 401(k) plan for employees at a small business is hard — it costs money, it takes time to manage and the details can be overwhelming. At least, that was the experience of Sheeraz Khan, president of logistics company KDL.
But workers want it, and they’ll take advantage of an employer-sponsored retirement plan. That was also his experience when he implemented a program. Since he offered a plan, there has been a 67% adoption rate for eligible participants, Khan said. “It’s showing that people do care about it,” he said.
Logistics workers — the people who are responsible for the thousands of packages delivered to consumers every day — are hungry for retirement plans. Human Interest, a retirement plan provider that Khan is working with, has found the logistics sector is very engaged with the offering. Human Interest currently offers these benefits to 95,000 logistics workers, but recently partnered with the Route Consultant Purchasing Alliance, a member group for logistics workers, which opens up those benefits to more than 250,000 delivery business workers.
There’s a misconception that these workers can’t, or won’t, save for retirement, but Jeff Schneble, chief executive officer of Human Interest, hasn’t found that to be the case.
More than eight in 10 of these eligible workers are participating in a plan now