Small businesses are in many ways the engine of the American economy, but they tend to be hampered by one crucial problem. At companies with fewer than 50 workers, not even half the employees have access to a 401(k) or pension, according to the Bureau of Labor Statistics. By contrast, at companies with 500 workers or more, 90 percent of employees have access to a retirement plan.
This leaves millions of Americans without an easy way to save for their futures. Companies with fewer than 100 workers employ 36 percent of the U.S. workforce, or about 42 million people.
There are options for small-business owners on the way, though. New Jersey has become one of the few states that is working on setting up a retirement plan marketplace, where employers can shop for lower-cost retirement plans.