One chart shows how small businesses are ramping up a favorite worker perk

A recent chart highlights the growing trend of small businesses offering retirement plans to their employees, with millions more workers now having access to these benefits compared to 2019. This increase is attributed to various factors, including industry mandates, efforts to retain employees, and a growing emphasis on workers' financial well-being.

Retirement access is most prevalent in public administration, professional services, and finance sectors, with the greatest percentage-point growth seen in public administration. White-collar workers have notably benefited the most from this shift. Experts attribute the rise in retirement plan offerings to business owners' focus on long-term financial planning for their employees, efforts to reduce employee turnover, and new state mandates.

For instance, in California, non-exempt businesses with at least one worker must now offer a state-facilitated retirement savings program. Similarly, Delaware requires employers with five or more W-2 employees to provide a qualifying plan. This trend allows small businesses to remain competitive in the talent market, as Howard Telson, owner of a small accounting firm, experienced firsthand.

Despite a slight decline in overall savings rates among small business employees, the increase in hourly workers participating in retirement plans highlights a positive shift in financial planning.