Utah is one of the strongest economies in the nation, but beneath that strength is a growing challenge we cannot afford to ignore. Utah ranks dead last in the United States for retirement readiness. Today, between 700,000 and 900,000 working Utahns lack access to an employer-sponsored retirement plan. That is not a problem we can continue to ignore. It is a reality affecting families in every part of our state, from rural communities to our fastest growing cities. If we fail to act, this gap will not simply resolve itself. It will grow, and future generations of Utah taxpayers will feel the consequences.
Retirement preparedness is often framed as a matter of personal responsibility, and personal responsibility absolutely matters. But when hundreds of thousands of workers are not accessing simple savings tools, the issue becomes larger than any one household. It becomes a workforce issue, an economic stability issue and ultimately a societal issue. When large numbers of residents reach retirement age without savings, they are far more likely to rely on public assistance programs, placing additional pressure on state budgets and on the working families who fund them.
HB250 offers a practical, Utah-based solution to this challenge. HB250 creates the Utah Retirement Plan Exchange, a state-facilitated marketplace where private-sector retirement providers can offer plans to employers in one simplified location. The goal is straightforward: make it easier for employers, especially small and mid-sized businesses, to offer tax-preferred retirement benefits to their employees.
It is important to be very clear about what HB250 is not. It is not a mandate. No employer is required to participate. No employee is required to enroll. This bill simply creates an exchange structure, initiated by the state and powered by the private sector, to reduce complexity and increase access. Employers who want to offer retirement benefits but feel overwhelmed by cost, paperwork or plan selection will finally have a streamlined option.
The private retirement plan market often serves large employers more efficiently than small ones. That is not because providers are acting in bad faith. It is because large employers bring economies of scale that make administration easier and more profitable. Smaller employers, who are the backbone of Utah’s economy, often face higher per-employee costs and more administrative burden. National data shows that only about one-third of small businesses offer retirement plans, and even among those that do, participation rates lag behind larger firms. Many small business owners cite cost, complexity and lack of administrative support as primary barriers.
HB250 addresses those barriers. By creating a centralized exchange, the state can help standardize processes, improve transparency and allow providers to reach a larger combined pool of small employers. That helps reduce costs, simplifies decision-making and expands options, all without forcing participation or crowding out the private market. In fact, this model relies on private-sector innovation and competition to drive quality and efficiency. Financial advisers would also be listed on the exchange website, creating additional transparency and helping employers and workers connect directly with professional guidance when they need it.
This is a conservative solution in both philosophy and design. It promotes individual savings and personal responsibility. It supports small businesses rather than burdening them. It uses market competition rather than government mandates. It focuses on long-term fiscal stability. In many ways, this approach represents the best of Utah policymaking: pragmatic, innovative and grounded in the belief that government can create frameworks that allow the private sector to succeed.
This issue also matters from a federal policy perspective. A new federal incentive now provides a Treasury match of up to 50% on as much as $2,000 in annual retirement contributions per person, capped at a $1,000 federal contribution for eligible Traditional IRA or 401(k) savers. But workers can only benefit if they have access to retirement savings vehicles in the first place. States across the country are increasingly concerned that their residents are missing out on these incentives because they lack access to workplace retirement options.
Some states are already considering asking the federal government to support state-run programs that include mandates or direct government competition with the private sector. Utah’s approach offers a clear alternative. It preserves choice, avoids mandates, keeps the state out of asset management and relies on private providers while still ensuring access. And if a future federal mandate is ever imposed, Utah will already have a market-based, state-facilitated solution in place.
If we do not address the retirement savings gap, the long-term costs could be significant. When workers reach retirement age without savings, public spending increases through greater reliance on health care assistance, housing support and other safety net programs. At the same time, consumer spending declines, which affects local businesses and tax revenues. Over time, that combination creates real pressure on state budgets and economic growth. Pew estimates that inadequate retirement savings in Utah could drive more than $1 billion in additional state spending through 2040 if nothing changes. Simply put, ignoring this issue today shifts the financial burden to future taxpayers.
Utah has an opportunity to lead. Other states are grappling with the same challenge, and many are experimenting with mandates or state-run savings programs. HB250 offers a different path. It preserves employer choice, strengthens the role of the private sector and demonstrates that states can expand retirement access without expanding government control.
The Utah Retirement Plan Exchange is not about replacing the private market. It is about helping it work better for more people. It is about making sure that a worker at a small construction company, a local restaurant or a family-owned business has the same basic opportunity to save for retirement as someone working at a large corporation.
This is about economic stability. It is about making sure that Utah remains not only a great place to work today but also a place where people can retire securely tomorrow. HB250 is a smart, measured step in that direction, and it reflects the kind of forward-thinking, responsible policymaking that Utah is known for.