Retirement funds in America accumulate mainly through employer-sponsored plans including 401(k) accounts. As of 2021, 68% of private industry workers had access to this type of plan. However, while an exact number is not known, in 2017, the U.S. Census Bureau estimated that only 41% of those with access to a 401(k) contributed to it.

As a response to this issue, a number of states have passed retirement mandates requiring businesses to offer their employees a retirement savings plan. While well-intended and necessary, these mandates can have a significant impact on small businesses, which often lack the resources to comply and the options needed to maximize their investment into retirement benefits.

But, just how do these requirements affect business owners themselves? As a leading digital solution for SIMPLE IRAs, Wealth Stack has worked hard to explore the costs and benefits of state retirement mandates for small-business owners as part of improving our own affordable retirement solution offerings. Here is what we’ve found.

Which States Currently Have Retirement Mandates?

At the time of writing this article, more than 30 states have considered or begun to implement state-mandated retirement plan legislation. Of those 30 states, 13 have currently signed those programs into law. This includes programs such as:

• CalSavers in California.

• Illinois Secure Choice in Illinois.

• MYCTSavings in Connecticut.

• OregonSaves in Oregon.

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