Arizona Tribune - Most Small Businesses Aren't Ready for New Retirement Mandates, Ubiquity Retirement + Savings Survey Finds

SAN FRANCISCO, CA / ACCESS Newswire / December 10, 2025 / Small businesses increasingly see 401(k)s as a must-have to attract and keep great people, but many admit they are still playing catch-up on the fast-changing rules that govern them.

A new survey from Ubiquity Retirement + Savings, a pioneer and nationally recognized innovator in small business retirement solutions, shows that small business owners know the value of offering a 401(k) plan, but reveals only 30% are prepared for what's coming next.

According to the data, nearly 94% of employers said providing a retirement plan is important for attracting, retaining and engaging employees in today's labor market. That's a near-unanimous view that these plans aren't just about checking a compliance box, they're a key part of keeping good people on staff.

At the same time, readiness for new rules under SECURE 2.0 and growing state mandate programs tell a different story. Only about 30% said they feel completely prepared to meet the latest requirements, and 14% admitted they're unsure what they need to do next.

"These results reflect what we hear every day from small business owners. We're seeing many who want to upgrade their plans or are starting from scratch," said Hunter Claxton, SVP of Strategy at Ubiquity Retirement + Savings. "With new state and federal changes looming, the next year will serve as the perfect opportunity to get ahead, and that's where we come in."

Despite the uncertainty, many employers are already taking action. About 38% of businesses say they have taken steps in the past 12 months to strengthen retirement benefits, including increasing employer contributions, expanding eligibility, or improving employee education and communication. Among those planning changes in the next year, 24% intend to expand benefits or eligibility and 17% plan to adopt a new plan, while another 24% do not plan to take any action. At the same time, only 53% of employers know whether their state currently requires participation in either a state-run IRA or a private 401(k) program, and 47% say they are unsure. This mix of momentum and confusion emphasizes the opportunity to turn good intentions into actual retirement readiness.

The survey also found that tax incentives, simplicity, and employee retention remain the biggest factors driving new plan adoption. In other words, when plans are easier to set up and the financial benefits are clear, small employers are quick to act. Recent changes under SECURE 2.0 have expanded federal tax credits available to small businesses that start a retirement plan, including credits that can cover up to 100% of eligible startup costs for employers with 50 or fewer employees and additional credits tied to employer contributions. These incentives can significantly reduce, and in some cases effectively eliminate the initial cost of launching a plan.

"Policy has actually tilted in favor of small businesses," Claxton added. "Between SECURE 2.0 tax credits and simplified plan designs, it has never been more affordable or more realistic for a 10 or 20 person company to offer a high-quality 401(k). Our job is to turn that complexity into clear steps, so owners can focus on running their business instead of decoding retirement law."

With several SECURE 2.0 provisions taking effect through 2025 and into 2026, including expanded eligibility for long-term part-time employees, enhanced tax credits for new plans, new Starter 401(k) options, and changes to catch-up contributions, the next year will be a turning point for small businesses to modernize their retirement offerings and stay competitive in the labor market.

Survey Methodology:
The survey was conducted by Ubiquity Retirement + Savings among 1,000 U.S. small business owners in October 2025. Respondents represented a range of industries and company sizes.

About Ubiquity Retirement + Savings

Since 1999, Ubiquity's mission has remained the same: to provide small business owners with qualified retirement plans that meet their needs and propel them toward financial success. Combining advanced technology with a flat-fee cost model, flexibility, and world-class customer support, Ubiquity has transformed hundreds of thousands of businesses and lives. Learn more at www.myubiquity.com.

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Media Contact Info:

Interdependence for Ubiquity Retirement + Savings
Russ Pagano | (973) 303-3237 | [email protected]

SOURCE: Ubiquity Retirement + Savings

View the original press release on ACCESS Newswire

E.Rodriguez--AT