Large employers three times as likely to add retirement benefits

Large employers were three times as likely as small and midsized businesses to add retirement benefits in 2026, according to Principal's Well-Being Index released Nov. 11 and reported by 401(k) Specialist.

The quarterly index, a measure of U.S. business optimism and financial health, fell 8% from July to 6.02 out of 10, tying April 2025 for its lowest reading since it began in 2021. Small and midsized businesses fell to a record low of 5.28, while large employers held nearly steady at 7.08, the widest gap between the two groups since March 2021.

Advisors working with large plans are competing with wellness programs for a place in 2027 benefit budgets. Nearly 15% of large businesses plan to add or expand financial advice specific to retirement plans and benefits, while financial wellness programs are the top benefit large employers plan to add or expand, ahead of health insurance, retirement benefits, financial advice and paid family or medical leave.

For 2027, 8% of employers plan to add or expand benefits and 1% plan to cut. Across the benefits Principal tested in 2026, 63% made no change, 8% added or expanded and 3% reduced or eliminated one.

Business leaders' view of the wider economy was bleaker than their benefits plans. Just 16% describe the U.S. economy as growing, and optimism about the next 12 months fell to 40%, down 10 points from July.