Small Businesses, Big Opportunities: Transamerica's Prescience 2026 Report Reveals Optimism Amid Challenges

• Access to retirement plans is expected to increase
• Automatic enrollment is a growing trend
• Employers must decide how to meet state retirement mandates where applicable
• Pooled plan arrangements offer alternatives
• Improvements in participant savings behaviors

Transamerica's latest installment in the "Prescience 2026" report series reveals optimism among industry experts related to employees of small businesses. Despite ongoing workforce challenges, experts in the retirement industry are confident that more small companies will offer a workplace retirement plan and more employees will participate.

The Prescience series is a multi-year initiative by Transamerica to uncover trends and opportunities in the employee benefits landscape. The Prescience 2026 Council comprises industry experts, thought leaders, and visionaries who work collaboratively to analyze market trends and provide actionable insights. Each survey in the series asks council participants to forecast expectations on a different aspect of employee benefits. The new report, “Small Business Benefits Trends,” is the fourth entry in the current series.

“Small companies are not just surviving; they are thriving, contributing significantly to the economy, and demonstrating resilience and adaptability in a fast-changing landscape. The experts on the Prescience 2026 Council see a sunny future for small businesses. In today's marketplace, smaller businesses have more options than ever to realize cost efficiencies and ease the administrative burden of offering a retirement plan,” said Wendy Daniels, head of marketing and customer experience for Workplace Solutions at Transamerica.

Pathways to Retirement 

The report shows that panelists are overwhelmingly optimistic that the number of small business employees with access to a defined contribution plan will have increased by the end of 2026. However, their survey responses and subsequent discussions reveal a need for more agreement about how that milestone might be reached.

Pooled Plan Arrangements

Pooled arrangements, such as pooled employer plans (PEPs), multiple employer plans (MEPs) and groups of plans (GoPs), provide an efficient, cost-effective alternative to a single-employer plan for businesses of all sizes. Yet, Prescience panelists do not expect to see the percentage of small businesses offering pooled arrangements to exceed 50% by the end of 2026. 

State-Mandated Plans

Panelists foresee the number of states enacting mandatory workplace retirement plan coverage to increase only slightly above current levels. But as more states mandate coverage for employees of even the smallest employers, the decision about joining the state’s arrangement or providing a company-sponsored plan becomes more urgent.

Responses were mixed when panelists were asked what type of plan small employers might choose when facing a new state mandate; 45% predicted they would select a single-employer plan, and 40% a pooled arrangement. The results were equal at 47% each when the question was expanded to include small employers offering a plan for the first time in any state.

Participation and Engagement

Two-thirds of respondents foresee 80% of employees who have access to a workplace retirement plan participating by the end of 2026. However, panelist responses suggest that most believe automatic enrollment is primarily responsible for the anticipated increase. 

Small business owners are encouraged to review their employee benefit options and consult financial experts for personalized advice to make the most of the opportunities available. To access the full report, please visit www.transamerica.com/prescience.