One chart shows how small businesses are ramping up a favorite worker perk
Small businesses are increasingly offering retirement plans to employees, with participation rising significantly since 2019. Factors driving this trend include state mandates, efforts to improve employee retention, and a growing focus on worker financial well-being.
Why it matters
This shift indicates a broader improvement in financial security for small-business workers, who have historically lacked the benefits typically found in larger corporations.
Millions more workers have access to retirement plans than in 2019. MoMo Productions/Getty Images Millions more small-business workers have access to retirement plans than in 2019. Reasons for the increase include mandates, retention, and caring about workers' finances. Access to retirement plans is more prevalent in public administration than in other sectors. Small businesses are offering retirement plans a lot more often than they used to, and white-collar workers are benefiting the most. Nich Tremper, senior economist at payroll and benefits platform Gusto, said over 5 million more small-business workers had access to retirement plans than in 2019. He said in a post that "industries that have historically not offered 401(k)s are now doing so more often." For instance, the share in the hospitality sector climbed from 4% in 2019 to 12% in 2026.
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