There is a generational gap and gender divide among small business owners when it comes to retirement plan readiness and the perceived importance of offering a plan, according to a new survey.

The Capital Group, in partnership with C&C Multicultural, conducted an online survey from April 4–30, 2025, among 1,000 U.S. small business owners (and full-time employees) to gather their views on their outlook and readiness to offer retirement benefits and what they believe are the most important aspects to offering a plan.

Overall, the Capital Group found that most small business owners are optimistic about their businesses and are interested in offering retirement plans. Notably, Millennials (median age 37) stand out as the most open to offering a retirement plan, with more than three-quarters (77%) believing that offering one is “essential” to their business.

Millennials also lead the pack in terms of believing they are ready to offer a plan, compared to their younger and older counterparts. The youngest group, Gen Z owners, are less likely to see employer-sponsored plans as important (67%).

Surprisingly, Gen X small business owners are also less likely to believe in the importance of offering a retirement plan and the least ready to offer one (only 57% say they are ready now), despite having spent more time in the workforce and being closer to retirement age themselves.

Of these generations, however, Gen X respondents apparently conduct the most research in terms of exploring whether to offer a plan (Millennials 66%, Gen Z 69% and Gen X 72%).

When looking across age groups, a gender gap also emerged among small business owners not currently offering a retirement plan. In this case, the survey found that men (64%) were more hesitant to offer a plan, believing that their business isn’t ready, compared to 51% of women.

Women are also more interested in learning about the benefits of the SECURE 2.0 Act at 70% vs. 59% of men. Additionally, more women indicated they are “very likely” to start a plan based on start-up tax credits, with 53% of women respondents saying so, compared to 48% of men.

SECURE 2.0 Awareness

Still, despite the interest in offering a retirement plan, many small business owners continue to hold back by concerns over cost and complexity. The survey found that the top obstacles to offering a retirement plan are perceived cost (36%), a belief that their business is too small (34%) and lack of administrative resources (32%).

These findings come even after the SECURE 2.0 Act marked a significant step toward enabling more small business owners and employees to pursue retirement stability.

Overall, nearly 80% of small business owners say they’re familiar with SECURE 2.0. Even more (87%) are aware of SECURE 2.0 tax credits, which could inspire some to start a plan.

Not surprisingly, those in the finance/insurance industry are most familiar with the SECURE 2.0 Act, with 71% saying they are “very familiar” and 20% saying they are “somewhat familiar.” Overall familiarity is also high among construction and retail industries. For instance, 74% of retail respondents said they were either “very” or “somewhat” familiar with SECURE 2.0, with those numbers nearly evenly split at 36% and 38%, respectively. For the construction industry, 34% said they are very familiar, while 40% said they are somewhat familiar.

When small business owners who do not offer a retirement plan were asked what are the most motivating and important SECURE 2.0 provisions, starter 401(k) plans received the top billing at 38%, followed by the expanded start-up credit based on plan costs (31%) and the new start-up tax credit based on employer contributions (28%).

Options and Benefits

Meanwhile, the top three things that business owners are looking for in a plan include easy enrollment (38%), easy setup (38%), and a trusted provider (37%). For employees, the survey found that company match ranks highest in desirable plan features at 76%, followed by being able to contribute at any time (62%) and automatic enrollment (50%).

Among those small business owners not currently offering a plan, 61% say they would turn to a financial advisor first for guidance — with men significantly more likely than women to do so (76% vs. 58%) — but nearly a third (31%) of owners, overall, report not having a financial advisor at all.

However, the Capital Group’s survey found that small business owners who do offer a retirement plan report fewer concerns across nearly all business stressors — from rising labor costs to rapidly changing technology to cash flow issues.

Moreover, 81% of business owners who decided to offer a plan say they are glad they did, with many citing better employee retention (63%), stronger morale (56%), and increased company loyalty (44%) as the biggest benefits.

“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,” stated Renee Grimm, Senior Vice President, Retirement Plans at the Capital Group. “With the right advice and support, business owners can discover how the benefits outweigh the perceived obstacles.”

Among the respondents, the employer sample included owners of businesses operating for 3 to 15 years, generating revenues between $250K and $100M, and employing at least three full-time staff members in addition to the owner. These businesses represented a range of industries and included those that currently offer and do not offer workplace retirement plans.

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