Having access to an employer-sponsored retirement plan significantly increases the likelihood that people are saving towards their retirement. Employee Benefit Research Institute found in its most recent Retirement Confidence Survey that 8 out of 10 people with an employer-sponsored savings plan such as a 401k are saving for retirement vs. only 4 out of 10 people without a plan. Saving and investing early is one of the key drivers of achieving successful retirement but unfortunately, not all companies sponsor a retirement plan for their employees due to the administrative burden and cost.

This slide shows the percentage of workers in the private sector, who have access to retirement benefits through their work. While the average is about 7 out of 10 people who have access to retirement benefits, it’s mostly workers who work for larger companies than those who work for smaller companies. To deal with this disparity while recognizing the challenges faced by many small businesses, recent legislation such as state-specific mandates and SECURE 2.0 aim to broaden access for those who work for smaller companies.