With access to a 401(k) plan, 82% participate and save toward retirement. Without access, less than 25% save toward retirement.
SAN FRANCISCO, CA, Dec. 17, 2025 — Human Interest, Retirement Industry DisruptorTM, today released a new report quantifying the massive impact that access to employer-sponsored retirement plans could have on more than 80 million hourly workers in America.1 The findings reveal a dramatic and solvable gap: when hourly workers have access to a retirement plan, 82% participate and save; without access, 75% save nothing at all.
The report, “Access Matters: Unlocking Retirement Savings for the Hourly Workforce,” surveyed hourly employees and franchise owners across the U.S. The report reveals that when provided with a workplace savings plan, hourly workers are engaged and motivated to participate:
Strong commitment: Among those surveyed who are saving in a plan, nearly half (45%) are contributing a meaningful 3–5% of their salaries.
Long-term perspective: For workers whose employers don’t provide matching contributions, 84% say a match would encourage them to save even more.
Set it and forget it: 44% of respondents say they appreciate features like auto-enrollment and auto-escalation for their simplicity and effectiveness.
“This research clearly shows that America’s hourly workers want to save for retirement,” said Rakesh Mahajan, Chief Revenue Officer, Human Interest. “They’re not falling behind because of lack of motivation—they’re falling behind because of lack of access. It’s time for the retirement industry to fix that.”
Mahajan also points to internal data from Human Interest that shows when combined with an employer match, the average savings rate for hourly employees is over 8%. In comparison, the average savings rate for salaried employees is over 11%.2
“This group wants to save,” he said. “They save at rates that are approaching the average savings rates of salaried employees, but they need access in order to be successful.”
Millions of Americans don’t have a retirement plan offered by their workplace. In the private sector, 41 million American workers lack access to an employer-provided retirement plan, and adding in part-time workers increases the number to 54 million.3 As noted in the report, one impediment to hourly workers participating is that some find the retirement plans their employers offer to be too complicated to understand. Compounding the employees’ issues, over one-third (34%) of franchise owners surveyed cited an extra administrative burden as a challenge of managing a retirement plan, and 30% are concerned about regulatory and compliance issues.
“The legacy retirement system has failed millions of workers in essential sectors like retail, food service, and construction. For decades, employers in these industries have dealt with an industry plagued by needless complexity, junk fees, poor service, and administrative burden,” said Mahajan. “Human Interest is committed to closing the access gap by making it seamless for employers to offer a 401(k) - through fast, automated processes, transaction fee elimination4, compliance support, comprehensive tools for participants, and the first-of-its-kind Customer Experience Guarantee.5”
The report shows that providing a workplace retirement plan can bring significant benefits to business owners as well as workers, and can serve as a high-impact tool for attracting and keeping talent in a competitive labor market:
Recruitment factor: 79% of hourly employees said access to a workplace savings plan could factor into their decision to accept a new role.
Improved satisfaction: 62% of franchise owners surveyed said that launching a retirement plan has increased employee satisfaction or morale.
Better employee retention: 62% of franchise owners surveyed said that offering a retirement plan helped them reduce turnover.
Replacing an hourly worker can cost anywhere from 50% to 100% of an employee’s annual salary.6 By closing the savings coverage gap, employers can significantly reduce this costly turnover and foster a more engaged, productive staff.
Human Interest customer Chris Braund, co-owner of Pampered Pets Inn, reports that providing a 401(k) for employees is important for talent retention. Braund says, “It’s a very competitive market for labor. So we feel that we need to offer something that is unique, that is going to be attractive, and then take care of people so that they stay with us.”
The findings of today’s report are clear: providing access to retirement plans for hourly employees is a winning business strategy, engages and motivates workers to save at impressive participation rates, and drives better outcomes for retirement savings.
Survey Methodology:
The study conducted by Talker Research surveyed 250 hourly workers with access to a retirement plan, 250 without access, and 100 franchise owners between August 21 and September 2, 2025, using a random double-opt-in methodology. Survey takers participated anonymously and were invited to take the survey by Talker.
About Human Interest
Human Interest, Retirement Industry DisruptorTM, is focused on fixing a broken industry that often relies on legacy technology, manual processes, and offshored service models. Human Interest is transforming the way 401(k)s should work, including several industry firsts: eliminating transaction fees, offering a cash-back incentive program for plan participants, and introducing a first-of-its-kind money-backed customer experience guarantee. Founded in 2015 and headquartered in San Francisco, Human Interest has helped provide retirement benefits to employees at 40,000 companies and counting. For more information, please visit humaninterest.com.
Bureau of Labor Statistics: Characteristics of minimum wage workers, 2023: BLS Reports
Human Interest calculation of average savings rates of hourly and salaried employees participating in Human Interest Plans, November, 2025.
The U.S. Retirement System: Fast Facts - Economic Innovation Group, November 2025
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The Human Interest Team
We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees. Human Interest offers a low-cost 401(k) with automated administration, built-in investment education, and integration with leading payroll providers.