20 stories for 20 years: Building a more secure future for small businesses

Many small business owners are so busy just trying to make payroll every month that they don’t have time to think about retirement. And even if they did take the time to plan for their futures, the reality is that most small businesses can’t afford to participate in private retirement savings programs – a reality that’s not only bad for entrepreneurs, it’s also a problem for their businesses when they’re trying to attract and retain talented workers. In fact, Small Business Majority’s research has found that less than one-fifth of small businesses provide retirement benefits for their employees.  

Given the difficulty many entrepreneurs have when trying to save for their future, Small Business Majority has encouraged the federal government and the states to offer Auto-Individual Retirement Accounts (IRAs) or other programs in which employees are automatically enrolled. When California became the first state to pass legislation like this, we partnered with the state on the CalSavers program, which offers Roth or traditional IRA account options for workers. Most importantly, CalSavers is available to employers without fees or contributions, and employees can opt in or out at any time. CalSavers began as a pilot program in 2018 before officially launching in 2019. During the pilot phase, Small Business Majority network member and San Francisco book store owner Christin Evans became one of the first 10 small employers to sign up. She even appeared in a flyer advertising the new program. We recently spoke with Christin about what CalSavers has meant to her business:

Christin added: “CalSavers is a no-brainer. It’s no cost to the business, and it provides a benefit to the business’s employees. It is a great way to deliver benefits that people would obtain in a corporate setting.”

As of March 2025, 11,177 employers with fewer than five employees had registered with CalSavers. Given the success of the program other states have followed suit, including Colorado, which passed similar legislation to California several years ago – thanks to polling from Small Business Majority and  testimony from SBM staffers and our network of local small business owners. Today, 20 states have auto-IRA programs meaning many thousands of small business owners and their employees now have the ability to save, which not only helps them plan for their future, it also goes a long way toward helping small firms attract and retain top talent. While great progress has been made in this space, our work continues and we still advocate for more states to adopt auto-IRA programs.