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Small businesses are rapidly closing one of the biggest gaps in America’s retirement system, The Wall Street Journal writes.
Since 2019, nearly 6 million additional workers at firms with fewer than 100 employees have gained access to 401(k)-style plans, bringing total coverage at small employers to more than 21 million workers.
The shift is being fueled by a tight labor market, enhanced federal tax credits and state mandates requiring companies to offer a retirement savings option. New structures, including pooled employer plans that allow unrelated firms to band together to reduce costs and administrative burdens, are also accelerating adoption.
For owners, offering a 401(k) is increasingly viewed as a competitive necessity—a tool to attract and retain talent while strengthening their own long-term financial security. With higher contribution limits than many state-run IRA programs, traditional 401(k)s remain appealing. Industry forecasts suggest small firms will be the primary growth engine for retirement plan expansion through the end of the decade.
The Wall Street Journal has the full story.
