Small-Business Retirement Plans Surged 64% Since 2019

Full analysis

A report by Gusto senior economist Nich Tremper, drawing on administrative payroll data, found that retirement plan adoption by small businesses (2–99 employees) rose 64% between 2019 and 2026 — from 19% of small businesses offering a plan to 31%. Research firm Cerulli projects that 92% of all defined contribution (DC) plans — employer-sponsored savings accounts like 401(k)s — will be in the micro-market by 2029, and total plans will exceed one million by 2030. Tremper notes that government mandates at the state level accelerated the trend, though they are not the sole driver.

For gig workers and employees of small businesses, this matters directly: participation rates for hourly workers have climbed from 22% to 38% over seven years, though they still lag salaried workers at 73%. Fintech providers such as Vestwell, Human Interest, and Betterment, along with payroll platforms like ADP, Paychex, and Gusto, have been the primary beneficiaries of this growth. Traditional retirement plan advisors and large record keepers have been slower to adapt, leaving a significant advice gap for smaller employers and their workers.