The survey, "Financial Advice Today: A Small Business Perspective" found that the majority of small business owners can't accurately answer basic questions about their retirement plan responsibilities, yet more than four in five owners say they are comfortable they are meeting them.

"Retirement plan education is a major and immediate need among small business owners that financial advisors can help fulfill," said Michael Butler, senior vice president of NFS Distributors, Inc., a division of Nationwide Financial.

"Many business owners are unaware of legal responsibilities, and at risk both personally and professionally. They need to understand that professional help is available, and they should seek out a trusted advisor or retirement plan specialist to ensure they are suitably meeting their requirements and protecting themselves and their employees," he added.

Survey results indicate small business owners may be mistakenly confident, as many report critical lapses in at least one aspect of fiduciary knowledge (legal duties and obligations relating to a qualified retirement plan).

• They don't realize that they hold primary fiduciary responsibility. A large percentage incorrectly identified the plan investment provider, the financial advisor, and even employees as having this role. 
• They fail to evaluate investment selections regularly. Sixty-one percent of those with 401(k) plans reported they have an investment policy statement in place, but less than that reported having a formal process to evaluate investment selections on a regular basis.
• They do not question the ethicality or risk of required funds. More than one-third consider it acceptable for a plan provider to require its funds be among a plan's investment options.

Half of all small business owners surveyed say fiduciary and legal responsibilities are a top concern and a similar number reported increased concern on the part of employees about their retirement plan investments in the last year. But only one in five have taken steps in the past year to increase fiduciary oversight, including switching companies or consulting with a professional.

General retirement planning is also an apparent need among the small business community. The majority (63 percent of respondents) of small business owners are not very certain they've appropriately planned for their business' future. Retirement or transition are key areas of concern, second only to recession and economic issues. In fact, in terms of revenue, the smallest and largest companies were most concerned about retirement planning.

The Nationwide Financial 2003 Small Business Survey was conducted by TechnoMetrica, a full-service market research firm based in Oradell, New Jersey. It polled 501 owners/operators in a broad range businesses that had a maximum of 50 employees, were at least two-years-old, and produced more than $100,000 in revenue.