National 401(k) Day arrives on September 5, 2025, and while most view this as an employee-focused observance, smart business owners see it differently. This annual checkpoint offers the perfect opportunity to evaluate whether your retirement benefits are actually helping you win the talent that will drive your business forward.
Here’s what keeps many business owners awake at night: you find the perfect candidate, extend an offer, and they choose your competitor. Often, it comes down to benefits. The harsh reality is that exceptional employees have choices, and retirement benefits frequently tip the scale. When candidates see a robust 401(k) plan, they understand you’re thinking beyond their next paycheck. You’re invested in their long-term success.
What 2025 Brings to Your Advantage
The Internal Revenue Service (IRS) increased the annual 401(k) contribution limit to $23,500 for 2025, up from $23,000 in 2024. More significantly, the SECURE 2.0 Act created a game-changing opportunity for businesses competing for experienced talent.
Employees between ages 60 and 63 can now make additional catch-up contributions up to $11,250. That’s nearly 50 percent more than the standard $7,500 catch-up limit. If you’re trying to attract seasoned professionals who bring decades of experience, this enhancement is powerful. More information on the Super Catch-Up can be found here.
Think about your ideal hire: probably someone with experience, proven skills, and options. These enhanced contribution limits matter enormously to professionals approaching retirement who are evaluating their next career move. When you can offer this advantage, you’re speaking their language.
The Real Cost of Empty Chairs
Every business owner knows the pain of losing good people. The Society for Human Resource Management (SHRM) reports that replacing an employee can cost between 50 to 200 percent of their annual salary. For a $60,000 employee, you’re looking at $30,000 to $120,000 in recruiting, interviewing, hiring, and training costs. Add the productivity lost while that chair sits empty.
Your 401(k) contributions are tax-deductible business expenses, creating immediate value for your bottom line. Your employees reduce their current tax burden through pre-tax contributions. Meanwhile, you’re building loyalty that keeps your best people from walking out the door.
However, offering any retirement plan isn’t enough. A bare-bones plan with limited investment options signals that you’re checking boxes, not investing in people. A thoughtfully designed plan with competitive matching and quality investment choices signals something entirely different. It says you understand talent is your most valuable asset.
Building a Plan That Actually Works
Employer matching remains a powerful tool for attracting and keeping talent. When you match employee contributions up to a specific percentage of their salary, you’re providing immediate, measurable value. A common approach involves matching 50 cents for every dollar an employee contributes, up to six percent of their salary. This essentially gives them a three percent raise for participating.
Investment options should be comprehensive without overwhelming people. Most employees want diversified mutual funds and target-date options that automatically adjust as they approach retirement. They need quality choices that align with their retirement timeline, not overwhelming complexity.
Automatic enrollment transforms participation rates almost overnight. When new hires are automatically enrolled at a reasonable contribution rate, participation typically jumps from around 40 percent to over 85 percent, according to Department of Labor data. This simple change makes your plan more valuable to more employees without additional effort from your team.
Your September 5th Business Review
Use National 401(k) Day as your annual retirement plan assessment. Start with participation rates. Are most eligible employees contributing enough to receive your full match? Low participation often signals opportunities for better employee education or plan design improvements.
Review your plan fees and investment performance. Under the Employee Retirement Income Security Act (ERISA), you have responsibilities to act in your employees’ best interests when making plan decisions. This isn’t bureaucratic red tape. It’s ensuring your plan delivers real value.
Most importantly, ask yourself whether your current plan reflects what you’re trying to accomplish as a business. If you’re competing for top talent in a tight labor market, your benefits need to match or exceed what candidates might find elsewhere. Your retirement plan becomes the reason top candidates choose you over competitors offering similar salaries.
The Competitive Reality
The businesses that treat their retirement plans as strategic differentiators consistently outperform in both employee satisfaction and talent acquisition. Your 401(k) plan is an investment in building the workforce that will determine your company’s trajectory.
Many business owners view retirement plans as regulatory requirements or nice-to-have benefits. The most successful ones understand they are competitive weapons. When you design your plan with intention and purpose, you create value that extends far beyond compliance.
National 401(k) Day reminds us that retirement planning deserves the same strategic attention you give to other business investments. Business owners who align their retirement benefits with talent goals consistently outperform competitors in recruitment.
Ready to make your retirement plan work as hard as you do? Rea’s retirement advisory professionals understand that your retirement benefits should strengthen your competitive position, not create administrative headaches. We work with business owners who recognize that the right benefits package can transform their ability to attract and retain exceptional talent.
Let’s discuss what you want to accomplish. Contact our retirement plan consulting team today at and discover how strategic retirement benefits can give you the edge you need in today’s talent market.
