A new report shows one in five small business owners admit to having nothing saved for retirement, and the majority have saved less than $50,000.
“We’re watching a new kind of financial inequality unfold, one driven not by employment status, but by who the retirement system was designed to serve.”
WealthRabbit Co-Founder Jason Ackerman
Perhaps some are counting on proceeds from the eventual sale of their business to help fund their retirement, but the survey from WealthRabbit, a digital retirement platform purpose-built for small businesses and the self-employed, also found one in three believe they will never be able to retire.
According to the 2025 WealthRabbit Small Business Retirement Report, the traditional retirement system is failing the people powering America’s economy. The findings reveal a mounting retirement crisis that disproportionately affects women and the self-employed, with women twice as likely to have no savings.
The most common amount saved by entrepreneurs aged between 45-55 was $50,000, far below the $1.2 million recommended by financial experts for someone earning $120,000 annually and trailing the average 401(k) balance of between $152,100 and $199,900 for their peers employed in corporations.
“We’re watching a new kind of financial inequality unfold, one driven not by employment status, but by who the retirement system was designed to serve,” said WealthRabbit Co-Founder Jason Ackerman. “If you’re self-employed or work for a small business, the traditional system isn’t just hard to use, it may not even be available to you.”
A press release highlighting the new research says it indicates that America is headed toward a major retirement crisis. It points out that more than 99% of all U.S. businesses are small businesses with 100 or fewer employees, according to the Small Business Administration. Only 34% of small businesses offer a retirement plan to their staff, citing cost and complexity as a concern. That translates to 55 million Americans who lack access to employer-sponsored retirement plans.
Entrepreneurs cited inflation and customer spending as their top concerns and said cost and time commitment were the major reasons they don’t offer a workplace retirement plan. Most acknowledge the need for better solutions but feel overwhelmed by the process.
The study presents the findings of a Centiment survey conducted on April 15, 2025, among 826 owners of U.S. businesses with 1-100 employees.
Founded in 2024 by financial advisors Jason Ackerman, Adam Ackerman, and SPAN Enterprises CEO Naga Palanisamy, Rock Hill, S.C.-based WealthRabbit is focused on trying to close America’s small business retirement gap by offering “hassle-free, digital-first alternatives to traditional 401(k)s,” the release states. Designed specifically for businesses with under 100 employees, WealthRabbit focuses on SIMPLE IRAs which it says “offer lower costs and fewer compliance headaches” than 401(k)s.
“We built WealthRabbit for the 55 million Americans who’ve been left out of the retirement conversation,” said Adam Ackerman. “It’s time for a solution that meets people where they are.”
SEE ALSO:
• 401(k) Specialist Podcast: Unlocking SMB Market Success with 401GO’s Stan Smith
• Small Businesses: Overcoming Barriers to Retirement Plans
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.