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Retirement plans benefit both employers and employees
Attracting and retaining employees and improving employees' financial wellness are important goals according to the respondents. Those who offer plans also have fewer concerns about inflation, labor costs, and technology challenges.
Optimistic about their business
Small business owners overall
Millenials are the most optimistic
Confidence to start a plan
Confident to start a plan now
Have researched plans
Millennial owners are most ready to offer a plan
They lead the pack in terms of readiness, but Gen X does the most research.
Men are more hesitant to start a plan
“My business isn’t ready”
Men
Women
Women are more interested in learning about the benefits of SECURE 2.0 Act
Women
Men
More women are “very likely” to start a plan based on tax credits
Women
Men
Men and women tend to research plans the same way
Google is by far the most popular resource for retirement plan research. YouTube, podcasts and Facebook are also top resources which could help financial professionals and plan providers reach more people interested in retirement plans.
A retirement plan may ease business concerns
Those who offer a retirement plan tend to be less worried about the leading business concerns. Simply offering a plan may help boost employer confidence.
A way to help grow businesses
Owners report better employee retention, improved morale and greater productivity among the best things about offering a plan.
Best things about offering a plan
SECURE 2.0 Act can help drive retirement plans
The SECURE 2.0 Act marked a significant step toward enabling more small business owners and employees to pursue retirement stability.
Overall, nearly 80% of small business owners say they’re familiar with SECURE 2.0. Even more are aware of SECURE 2.0 tax credits. These incentives could inspire some to start a plan.
Familiar with SECURE 2.0 Act
Aware of tax credits
SECURE 2.0 awareness spans industries
Those in the finance/insurance industry are most familiar with the SECURE 2.0 Act, but overall familiarity is also high among construction and retail industries.
Starter 401(k) plans are among the most motivating and important SECURE 2.0 provisions for small business owners who don't offer a retirement plan
Starter 401(k) plans
Expanded start-up credit based on plan costs
New start-up tax credit based on employer contributions
Cost and complexity are key sticking points
Many small business owners want to help their employees save for the future but feel overwhelmed when it comes to offering a retirement plan. Clear, simplified education can help them move forward.
Perceived barriers to starting a retirement plan
Expensive
Business is too small
Limited administrative resources
Top three things business owners are looking for in a plan
Retirement plan readiness varies by industry
Although the construction industry lags finance/insurance and retail, more than half of business owners across these industries expect to start a retirement plan within three years.
Likelihood within 3 years
Financial professionals are a trusted but underutilized resource
Although financial professionals are the most trusted source for plan information, a significant number of small business owners don't use one. That's especially true for those who don't offer a plan.
Financial professionals are the most trusted source for plan info
Financial advisor or financial planner
Accountant/CPA
An experienced business owner
Those who offer a plan are more likely to use a financial professional
Offer plan
Don’t offer plan
Employees value retirement plans
While employees say they value retirement plans — especially features like company
matches — Gen Z is less convinced. Inflation stands out across the workforce as an
obstacle to contributing to a company plan.
Employees overall believe a retirement plan is important
Company match ranks highest in desirable plan features
Company match
Contribute at anytime
Automatic enrollment
Rising prices are the leading concern for employees
Inflation could negatively impact employee retirement contributions. More than half of employees say they choose how much to invest based on what they can afford.
TOP FACTOR WHEN CHOOSING HOW MUCH TO INVEST
“What I can afford at the moment.”
Satisfaction (almost) guaranteed
Those who are happy to offer a retirement plan
By helping business owners overcome retirement plan barriers through education and simplified recordkeeping solutions, financial professionals and plan providers can help millions of Americans improve their financial wellness and pursue better retirement outcomes.
Here's how financial professionals and plan providers may be able to turn interest into action:
Capital Group is committed to providing financial professionals with the knowledge and resources they need to offer retirement plans.
How the survey was conducted
Capital Group, in partnership with C&C Multicultural, conducted an online survey from April 4 to April 30, 2025, targeting U.S. small business owners and full-time employees aged 21 to 65. The employer sample included owners of businesses operating for 3 to 15 years, generating revenues between $250K and $100M, and employing at least three full-time staff members in addition to the owner. These businesses represented a range of industries, excluding finance, and included both those that currently offer and do not offer workplace retirement plans. The employee sample consisted of full-time workers with a mix of respondents whose employers either do not offer a retirement plan, offer a plan and the respondent is enrolled, or offer a plan and the respondent is not enrolled.
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