Small Businesses Expand Retirement Plans as 63% of Workers Rank Them Top Non-Health Benefit

3 articles · Updated · Entrepreneur · Sep 1

More small businesses are adding retirement plans as hiring pressure rises and workers increasingly treat long-term savings as a core benefit rather than a large-company perk.
ADP data shows 63% of employees rank retirement savings plans as the most important non-health benefit, while retirement benefits became the second most valued employee perk overall in 2025.
SECURE 2.0 has lowered the hurdle by expanding tax credits that can cover much or even all startup costs for eligible small employers, with extra incentives for employer contributions and automatic enrollment.
Pooled employer plans, payroll-linked platforms and automated administration are also cutting costs and compliance burdens, making features like auto-enrollment and auto-escalation easier to implement.
For small employers, the shift turns retirement benefits into a retention and trust tool that can scale from a 2-person shop to a 10-employee team.

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Could the hidden administrative costs of a new retirement plan eventually outweigh those generous SECURE 2.0 tax credits?

Will your employer's shiny new retirement perk actually offer a match, or just satisfy state laws with basic deductions?

Are state mandates and auto-enrollment actually building employee wealth, or merely creating a false sense of financial security?