Small U.S. Employers Lift Retirement Plan Offerings to 31%, Up 64% Since 2019
Updated
Updated · PLANADVISER · Aug 22
Small U.S. Employers Lift Retirement Plan Offerings to 31%, Up 64% Since 2019
3 articles · Updated · PLANADVISER · Aug 22
Summary
31% of U.S. private-sector businesses with 2 to 99 employees offered an active retirement plan in 2026, up from 19% in 2019, according to payroll provider Gusto.
State auto-IRA mandates, SECURE 2.0 tax incentives, tight labor competition and retention goals helped drive the increase; among firms with 2 to 5 workers, adoption rose 121% in mandate states versus 54% elsewhere.
20% of businesses with fewer than five employees now offer plans, double the 2019 rate, while hospitality climbed to 12% from 4% and agriculture to 17% from 8%, showing the fastest gains in historically low-coverage sectors.
38% of hourly workers were employed at a business with a retirement plan in 2026, up from 21%, and the share of all hourly employees saving through work more than doubled to 17% from 7%.
Professional services, finance and information firms still lead adoption at nearly 45%, but the broader spread suggests retirement benefits are becoming a standard small-business hiring and retention tool.