A report released Monday by Capital Group found large disparities between various generations of entrepreneurs and the retirement options available to them.
The Small Business America report — based on an April 2025 survey of 1,000 small-business owners regarding their outlook and readiness to offer retirement benefits — found that overall business optimism is high among 71% of respondents. Yet their readiness to offer retirement plans varies by generation.
“Hearing directly from small business owners of all ages and understanding their challenges is critical for us to deliver on our commitment to savers across America,” Renee Grimm, senior vice president of retirement plans for Capital Group, said in a statement.
“For the thousands of small businesses who make up such a large proportion of U.S. companies, offering a retirement plan doesn’t have to be a ‘someday’ item. With the right advice and support, business owners can discover how the benefits outweigh the perceived obstacles.”
Millennial small-business owners (with a median of age 37) are the most likely to view offering a retirement plan as essential, with 77% calling it a business necessity. Fewer Gen Z (67%) and Gen X (57%) respondents share that view, with Gen X the least prepared to offer a plan despite being closer to retirement age.
Among small-business owners without a retirement plan, a gender gap emerged as 51% of women said their business is ready to offer one, compared with 64% of men.
The main barriers cited were cost (36%), the belief their business is too small (34%) and lack of administrative resources (32%). Of those without a plan, 61% said they would seek advice from a financial adviser — a step more common among men (76%) than women (58%) — although 31% said they don’t have an adviser.
Business owners who already offer a retirement plan reported fewer worries about issues such as labor costs, technology changes and cash flow.
Eighty-one percent said they’re glad they implemented a plan, citing improved employee retention (63%), morale (56%) and loyalty (44%) as key benefits.
“We can make a meaningful impact in providing access to retirement for more people if we can help educate owners on the benefits for themselves and their employees of saving for retirement,” Grimm said.
“While correlation is not causation, we can observe that business owners who offer their employees a retirement plan seem to have greater peace of mind about the state of their business. The data suggests that a retirement plan may also help alleviate some business owners’ concerns, including things like attracting and retaining talent.”