Defined contribution plans are a critical tool for helping Americans save for retirement, but many workers do not have access to such plans at their jobs, especially those who work for small businesses. This is critically important as small businesses — those with less than 500 workers — make up 99.9%‡ of all businesses in the U.S. and the majority of them (65%) do not offer a plan, according to our research.
The SECURE 2.0 Act of 2022 (“SECURE 2.0 Act”) aims to make it easier for small-business owners to offer plans, but for a variety of reasons, many of them are still holding back. That’s where retirement plan professionals can add value and potentially build business. Capital Group recently completed a survey of small-business owners to better understand their motivations, challenges and what may be keeping them from taking the next step.