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Plans & Sponsors

Gusto data show small-business retirement plan adoption reached 31% in 2026, up 64% since 2019

Gusto economists tie the gains to SECURE Act provisions, state mandates and labor-market pressure, with hospitality, recreation and agriculture posting the steepest climbs.

At a glance

20-second brief
  • Hourly workers recorded the biggest access gain: 38% had a plan at work in 2026, up from 21%, a 79% increase, against 24% growth for salaried workers.

  • The underlying data come from Gusto's administrative payroll records, so the sample reflects employers that run payroll on its platform rather than the full universe of U.S. small businesses.

Small-business retirement plan adoption rose to 31% in 2026 from 19% in 2019, a 64% increase, according to research Gusto published on Aug. 18. The report, produced by economists at the payroll and HR platform, tracks active plan use through administrative payroll data. It attributes the expansion to provisions of the 2019 SECURE Act, 2022's SECURE 2.0, state mandates and labor-market pressure.

The gains are concentrated where plans were scarcest. The share of small hospitality businesses with an active plan tripled, to 12% from 4% — a 200% rise. Recreation rose 147% and agriculture 122%. Professional services, finance and information sit near 45%. Every industry Gusto observed gained ground, and the report says the steepest climbs came from the lowest starting points.

Hourly workers recorded the biggest access gain: 38% had a plan at work in 2026, up from 21%, a 79% increase, against 24% growth for salaried workers. Counting access and participation together, the share of hourly workers actually saving through an employer plan more than doubled, to 17% from 7%. "These patterns suggest that expanded coverage is reaching the workers who have historically been least likely to have it," the report states.

The underlying data come from Gusto's administrative payroll records, so the sample reflects employers that run payroll on its platform rather than the full universe of U.S. small businesses. In level terms, the move from 19% to 31% is 12 percentage points over seven years; the 64% figure is relative growth. The direction of travel holds across every industry in the report, but the levels may not line up with national survey measures of plan sponsorship.

The research also covers 401(k) access and participation at businesses with fewer than 10 employees. Gusto notes those businesses account for a large share of U.S. employment. This publication reported in August that the smallest employers are adding plans fastest.

Hospitality led small-business retirement plan growth, 2019–2026
Increase in share of small businesses with an active retirement plan
Hospitality200 % change
Recreation147 % change
Agriculture122 % change
GUSTO RESEARCH, PUBLISHED AUG. 18, 2026
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