1 in 5 Entrepreneurs Have No Retirement Savings: WealthRabbit Survey

Retirement is increasingly out of reach for America’s entrepreneurs, with one in three business owners feeling they will never be able to retire.

ROCK HILL, SC, UNITED STATES, May 14, 2025 /EINPresswire.com/ -- Retirement is increasingly out of reach for America’s entrepreneurs, with one in five small business owners reporting they have nothing saved and the majority having saved less than $50,000. One in three believe they will never be able to retire.

The traditional retirement system is failing the people powering America’s economy, according to the 2025 WealthRabbit Small Business Retirement Report, which surveyed more than 800 U.S. business owners with 100 or fewer employees.

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 CPA, CFP^®, CGMA. “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.”

This new research indicates that America is headed toward a major retirement crisis. 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.

Founded in 2024 by financial advisors Jason Ackerman CPA, CFP^®, CGMA, Adam Ackerman CFP ^®, and SPAN Enterprises CEO Naga Palanisamy, WealthRabbit is on a mission to close America’s small business retirement gap by offering hassle-free, digital-first alternatives to traditional 401(k)s.

Designed specifically for businesses with under 100 employees, WealthRabbit focuses on SIMPLE IRAs which offer lower costs and fewer compliance headaches than 401(k)s and allow business owners to offer retirement packages from just $29/month.

“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.”

About the survey

This study presents the findings of a Centiment survey conducted on April 15, 2025 among 826 owners of U.S. businesses with 1–100 employees. Margin of error: 3.41%.

About WealthRabbit

WealthRabbit is the first digital retirement platform purpose-built for small businesses and the self-employed. Founded by financial professionals, the platform provides flexible, affordable, tax-optimized plans with a modern user experience for both business owners, advisors, and accountants. Learn more at www.wealthrabbit.com.

Ebony Lewkovitz
WealthRabbit
ebony@edencommunications.com