Bellevue, Wash. — (November 30, 2005) — SymetraSM Financial has created a comprehensive 401(k) program designed to improve smaller company access to retirement plans. Symetra’s 401(k) program brings to small companies many of the same retirement plan benefits that larger companies typically enjoy.
Symetra developed the 401(k) program in an effort to reach the underserved and often overlooked small company market. While 90 percent of large and midsize companies provide their workers with a retirement plan, only about half of those employed by small businesses have access to an employer-sponsored retirement plan, according to a recent survey by Profit Sharing/401(k) Council1. Although small businesses account for more than 50 percent of the private workforce in the United States2, these companies are often at a disadvantage when it comes to retirement plans.
It is generally more difficult for smaller companies to offer employer-sponsored retirement plans than for larger companies. Smaller companies often lack the resources and infrastructure of larger companies to commit toward retirement plans. Also, plan providers may limit the investment choices available to smaller companies. As a result, a significant number of Americans do not have an easily accessible means to save for retirement.
Symetra retirement plans help smaller companies overcome these challenges. Plans are easy to administer, cost effective, and bring Fortune 500-style plan options to smaller companies. For example, Symetra’s 401(k) program does not restrict investments to proprietary mutual funds, but rather gives participants access to a diverse set of mutual funds from leading investment management firms, such as Fidelity Management & Research, American Funds, The Dreyfus Corporation, and Franklin Templeton Investments. Symetra’s mutual fund program features over 40 investment options and low investment minimums for participants.
Participants in the Symetra 401(k) program also have access to a self-directed online brokerage account through the industry-exclusive ShareBuilderŪ tool. This allows participants to invest directly in the stock market by purchasing fractional-shares in individual stocks, Exchange Traded Funds, or other index products through payroll deductions each pay period.
“Small companies are the heart and soul of the American economy and they deserve better retirement plan options,” said Jim Daniel, executive vice president and national pension sales manager at Symetra Financial. “That is why we are focusing our efforts toward serving this important market. Symetra is about removing obstacles for those smaller employers that want to make a 401(k) plan available but are unsure about how to offer such a plan.”
An employer-sponsored 401(k) plan brings several benefits to small businesses. Small business owners may be able to receive a tax credit for the first three years after starting up a retirement plan3. Providing a 401(k) plan can also serve as a powerful employee recruiting and retention tool. Among younger workers for example, retirement benefits are a very important factor in choosing a job for 49 percent of adults between the ages of 18 and 26, according to 2005 Diversified Investment Advisors study4. Small businesses can compete more effectively for talented employees, including younger workers, by offering a workplace retirement plan. With flexible employer matching and discretionary profit sharing contribution options, a Symetra 401(k) plan makes it easy for companies to support their employees’ retirement savings efforts.
Companies interested in learning more about Symetra 401(k) retirement plans can visit www.symetra.com for additional information. To find out how to begin offering Symetra retirement benefits, please call 1-800-706-0700.
About Symetra Financial
Symetra Financial is a family of companies with nearly a half-century of experience providing retirement plans, employee benefits, annuities and life insurance through independent distributors nationwide. The company has more than $20 billion in assets5 and is owned by an investor group led by White Mountains Insurance Group Ltd. and Berkshire Hathaway Inc. For more information, visit Symetra Financial's Web site at www.symetra.com.
Before investing, carefully consider the investment objectives, risks, and charges and expenses. This and other information is contained in the prospectuses. Please write or call your Registered Representatives or Symetra for free copies of prospectuses and read them carefully before investing.
Mutual funds and exchange traded funds are subject to market risks, including the potential loss of principal invested.
Securities are offered through Symetra Securities, Inc., Bellevue, WA 98004, 1-800-574-0233, member SIPC. Distribution of mutual fund retirement program is provided by Symetra Investment Services, 1-800-496-7667, 777 108th Ave. NE, Suite 1200, Bellevue, WA 98004-5153.
1 “48th Annual Survey of Profit Sharing and 401(k) Plans,” Profit Sharing/401(k) Council, October 11, 2005.
2 Small Business Profiles for the States and Territories, 2005 Edition, U.S. Small Business Administration, August 4, 2005.
3 Tax credit may be available under the Economic Growth and Tax Relief Reconciliation Act of 2001 and certain requirements must be met to receive the credit. Consult your tax advisor for more information.
4 “Generation Y” Attitudes and Perceptions, Diversified Investment Advisors, September 2005.
5 Total GAAP assets per closing statements of December 31, 2004
ShareBuilder Securities Corporation, a registered broker/dealer, is a subsidiary of ShareBuilder Corporation and Member NASD/SIPC. ShareBuilderŪ is a registered trademark of ShareBuilder Corporation. Patent Pending.
Symetra® and the Symetra Financial logo are registered service marks of Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004.
