How can we increase employers’ compliance with state-facilitated retirement savings programs?
Project Summary
More than 50 million workers in the U.S. don’t have access to a workplace retirement savings program. This exacerbates disparities in retirement savings, particularly given AARP’s finding that workers are 15 times more likely to save for retirement if offered an option at work. In response, 20 states across the U.S. have enacted retirement savings legislation to increase retirement access for workers. The People Lab and the Illinois State Treasurer’s Office are collaborating to try to increase small businesses’ compliance with the Illinois Secure Choice Savings Program Act, the Illinois state law requiring certain businesses to provide savings access to workers.
Why is this issue important?
Small businesses employ nearly half of all private‑sector workers, yet they are far less likely to offer retirement plans. In Illinois, more than 70 percent of workers at firms with fewer than 10 employees have no retirement savings plan. This affects workers of all education and income levels, and disproportionately burdens communities of color. In 2018, Illinois launched the Illinois Secure Choice program, a state-run retirement savings program. Employers in the state that do not offer qualified workplace retirement plans (like 401(k)s) and that had at least 5 employees in the previous year must register for Illinois Secure Choice. While the program has enrolled more than 167,000 savers who have amassed more than $325 million in savings, many businesses still do not fully comply with the requirements. However, there is little evidence on what types of communication are most effective at increasing compliance, or for whom.
What are we doing?
With the Illinois State Treasurer’s Office, we co‑designed two formal outreach messages: One emphasizes that the process of registering (or reporting an exemption) for Illinois Secure Choice is easy and costless; the other emphasizes the benefits of retirement savings for workers and employers alike. In February 2026, we conducted a randomized controlled trial to test the impact of each re-designed message against a status quo communication on employer compliance – defined as registering for Illinois Secure Choice or reporting an exemption.
What have we learned?
This study is ongoing. Initial results are expected in April 2026.