A 401(k) can sound like a term that lives behind a locked door. Behind that door are fees, portfolios, expense ratios, and a series of complicated acronyms, making it intimidating to even look for the keys to unlock it. But why is it that something so important can feel so inaccessible?

First, it's important to understand the playing field. There are two reasons this space can feel out of balance:

1. Many Americans don't have access to retirement plans through their workplace. Of the +120M private-sector workers in America, approximately 39M cannot save for retirement through their workplace. This, in large part, hits small businesses hardest. That's because many legacy 401(k) providers either don't serve small businesses, or they charge prohibitively high fees. Since this gap hits small business and service roles, it means the impact is likely most felt by your local bartenders, the kitchen staff at your favorite restaurant, and the woman behind the counter at your bookshop.
2. Most Americans feel too overwhelmed to start learning where to begin. A report from Guideline shows that when asked about their feelings toward saving for retirement, most respondents did not feel informed or confident:
   • Only 26% indicated they understood their options and felt good about where they were.
   • 74% felt there's important information they don't know, too overwhelmed to start learning, or that they didn't know where to begin.
   • Only 42% of respondents felt confident that they would be able to retire.
   • 37% have not started investing.

How to help employees feel more comfortable with their 401(k) 

It's imperative to meet your employees where they're at and understand their headspace when confronting their retirement planning options. Here are some of the common questions and concerns that employees have about 401(k) plans, along with suggestions on how to reply: