This Overlooked Factor Makes a Big Difference in How Much You Have Saved for Retirement

Key Takeaways

• Workers at large companies save more for retirement and have more access to 401(k) plans.

• For small businesses, size and cost concerns were some of the top reasons they didn’t plan to offer a retirement plan.

• State auto-IRAs and a new federal initiative aim to help workers without access to retirement plans.

Workers at large companies have a leg up when it comes to saving for retirement.

In a Transamerica Institute survey out Thursday, employees of large companies—those with 500 or more employees—reported having $121,000 saved across all household retirement accounts. In contrast, workers at companies with fewer than 100 employees had just $53,000 saved for retirement. (According to 2025 data from the Bureau of Labor Statistics, a bit more than a third of private-sector employees worked at small companies; a substantial chunk of small companies have fewer than 100 employees, with nearly 10% having under 10.)

“Large companies are far more likely to offer retirement benefits, such as a 401(k) or a similar plan, to their employees,” said Catherine Collinson, CEO and president of Transamerica Institute. “Not only do [workers at larger companies] have the ability to save for retirement in the workplace, they’re getting the benefit of employer matching contributions as well as education and investment-related resources.”

What This Means For You

If you work at a small company that doesn’t offer a 401(k), there are still ways for you to save for retirement. If you live in a state that has an auto-IRA program, you may be automatically enrolled in one. However, you can also open one on your own.

The vast majority of large employers (82%) offered a 401(k) while less than half (45%) of small employers did.

“Workers at small companies who don’t have access [to a workplace retirement plan] are at a tremendous disadvantage,” Collinson said.

So why are small businesses less likely to offer workplace retirement plans?

A 2024 Pew report found that small companies that offered workplace retirement plans typically incurred higher costs than larger companies. Small companies have fewer plan participants and a smaller asset base, leaving administrative costs spread across fewer workers.

In the survey, most (59%) businesses that do not currently offer a 401(k) do not plan to do so within the next two years. The most cited reasons were not being large enough and concerns about cost.

Yet for some workers without access to 401(k)s, auto-IRAs have emerged as a solution. In states like California, employers that don’t offer retirement plans must automatically enroll workers in a state-facilitated retirement savings program. Fifteen states have auto-IRA programs as of early 2026, according to Pew.