Help SMB Employers Improve Retirement Readiness

Quick look: October is National Retirement Security Month, and the latest data gives brokers plenty to discuss with small and mid-sized businesses (SMBs). With retirement concerns on the rise, small employers have more ways to strengthen their benefits strategies, thanks in part to the evolving opportunities under SECURE 2.0. Explore the latest research and see how a professional employer organization (PEO) partnership can strengthen your portfolio and retirement readiness across your clients’ workforces.

Each October, National Retirement Security Month spotlights the importance of financial literacy and the savings options available to workers.

From employees approaching retirement to younger workers opening their first account, and everywhere in between, retirement planning continues to be a priority. That makes now a good time for brokers to check in with their SMB clients and identify opportunities to strengthen their retirement benefits strategies.

Where retirement readiness stands today

Having a retirement savings account is important, but access alone doesn’t necessarily mean that someone feels fully prepared for the future.

The Federal Reserve’s 2025 household survey found that 61% of adults have a tax-preferred retirement account, such as a 401(k) or Roth IRA, yet only 35% of non-retirees feel their savings are on track.

Additionally, the National Institute on Retirement Security’s (NIRS) 2026 survey found that:

• 61% of Americans are worried they will not achieve financial security in retirement, up from 55% in 2020
• 73% say inflation has added to that concern
• About 90% report that rising health care and long-term care costs make preparation harder
• 79% agree that the average worker cannot save enough by themselves

At the same time, the segment of people reaching retirement age is rising. According to the Census Bureau, the population of those ages 65 and older reached 61.2 million in 2024, or 18% of all Americans, a 13% increase since 2020. The oldest Baby Boomers turn 80 this year, and every Boomer will be 65 or older by the end of the decade. Some retirees will return to work, but either way, brokers can make a big difference by helping business leaders guide employees toward a plan for the next chapter.

Younger employees are part of the picture, too. It’s projected that millennials may experience a 20% cut to their Social Security benefits, and the average millennial underestimates how much money they need to retire. The oldest of this generation are already in their 40s, making now a crucial time to focus on connecting them to the right education and benefits.

SECURE 2.0 updates worth revisiting with clients

The original SECURE Act of 2019 made it easier for small and midsize employers to offer affordable, easy-to-manage safe harbor retirement plans, and SECURE 2.0, signed into law in 2022, has been rolling out changes ever since. Your SMB clients may not be tracking every update as closely, so a quick refresher can open a useful conversation.

• Student loan match: Lets employers make retirement contributions based on employees’ loan payments, which can be a strong recruiting tool when 77% of non-retired Americans with debt say it keeps them from saving as much as they should.
• $1,000 annual emergency withdrawal: Avoids the early withdrawal penalty, but income tax still applies unless the money is repaid within three years.
• Updated catch-up rules: Limits are higher for ages 60 through 63, and since January 1, 2026, employees whose prior-year FICA wages exceed $150,000 must make catch-up contributions through a Roth 401(k) with after-tax dollars.
• Auto-enrollment requirement: 401(k) and 403(b) plans established after December 29, 2022 must automatically enroll eligible employees at a contribution of at least 3%, with exemptions for businesses with 10 or fewer employees and those open fewer than three years. Long-term part-time employees can also qualify sooner.
• Start-up tax credit: For smaller employers setting up a new retirement plan, the credit now covers up to 100% of eligible costs for companies with 50 or fewer employees (or 50% for organizations with 51 to 100 employees).
• Saver’s Match: Starting in 2027, the Saver’s Match will replace the old Saver’s Credit and provide a direct government contribution of up to $1,000 per person deposited into qualifying retirement accounts.

Review the complete SECURE 2.0 summary >>

How brokers can help strengthen retirement readiness

As seasoned employees cycle out and younger workers take a more active role in planning their retirement, brokers are well positioned to guide clients toward strategies that support a multigenerational workforce.

401(k) access

A 401(k) plan with an employer match remains one of the strongest tools for retirement readiness. AARP reports that Americans are 15 times more likely to save for retirement when they have a workplace savings plan.

However, access can be challenging for many small employers. Data from the U.S. Bureau of Labor Statistics (BLS) shows that in March 2026, 59% of private industry workers at businesses with fewer than 100 employees had access to a retirement plan, compared with 91% at companies with 500 or more. Further, 39% of workers at the smaller employers participated in plans, versus 76% at the largest.

There are also some fresh numbers to share with clients reflecting the impact retirement benefits have on hiring and retention. NIRS found that 75% of workers think these plans are very or extremely important when considering a job, yet just 54% of full-time workers are very or extremely satisfied with what their employer provides. That’s an opportunity for brokers to close that gap and look beyond whether a client offers a retirement plan and consider whether the plan is competitive and meets employee expectations.

Other ways to save

That gap is also a natural opening to revisit student loan repayment programs and tax-advantaged accounts, such as flexible savings accounts (FSAs) and health savings accounts (HSAs). Student loan support in particular remains rare, with the BLS reporting that only 3% to 15% of private industry workers have access to repayment assistance.

Financial education

Workshops and lunch-and-learns that give employees a better understanding of their plan options and cover topics like budgeting and debt reduction are a reliable way to engage team members, and the research shows why they matter.

In the NIRS survey mentioned above, just 9% of respondents estimated a retirement income that aligned with common withdrawal guidelines, and half of non-retired respondents expected a $100,000 nest egg to support withdrawals of $10,000 or more a year.

Educational sessions can teach employees the ins and outs of retirement planning, their plan’s structure, and future withdrawals.

Making it all easier with a PEO

Offering a complete retirement solution doesn’t have to mean stitching together vendors or fielding employee questions yourself. A PEO like ExtensisHR lets you offer SMB clients Fortune 500-level plans at large-group pricing, along with the administration and compliance work that comes with them.

Our benefits team keeps enrollment running smoothly and communicates plan details clearly and proactively. Behind the scenes, compliance monitoring keeps plans aligned with changing rules like SECURE 2.0. Our Employee Solution Center (ESC) is also available to answer employee questions, giving clients another resource when they need help navigating their benefits.

Because a PEO also supports payroll and day-to-day human resources needs, retirement becomes one piece of a complete package rather than another item for an SMB to manage.

Retirement readiness is a shared effort. Brokers bring the relationships and the advice, and PEOs bring the infrastructure and personalized support to carry it out. Working side by side, we can give worksite employees a stronger path to retirement and give clients a reason to stay put for years to come.