Many small business owners are struggling to provide retirement savings benefits, a new study from Fidelity has found. The firm's 2023 Small Business Retirement Index found that almost half (48%) of small business owners say they cannot afford to offer a retirement plan. Only one-third (34%) offer some form of retirement benefits to employees.

The report comes at a time when businesses are competing fiercely for workers, and the lack of retirement benefits is seen by many as a major disadvantage for small business owners.

"Small business owners are faced with so many challenges as they grow their business, from finding new customers to identifying their next round of funding," said Fidelity's Andrew Schreiner, senior vice president, small business retirement. "While offering a retirement benefit can feel like a potentially expensive and overwhelming task, there are many retirement saving solutions available for companies of all sizes. In addition to helping their employees establish a secure financial future, a retirement benefit also can have an enormous impact in attracting and retaining top talent."