A New Era for Cannabis: Inside the First Industry Retirement Report
SEATTLE, Feb. 24, 2026 /PRNewswire/ -- Leading Retirement Solutions (LRS), the most recognized cannabis 401(k) provider for more than a decade, has released the first comprehensive Cannabis Industry Retirement Report, marking a major milestone for an industry that has historically lacked access to traditional employee benefits.
The study analyzed 140 cannabis 401(k) plans across more than 420 entities. In total, these plans represent over 17,000 participants and more than $71 million in assets. The findings show that cannabis employers are not only offering retirement plans but also implementing features that rival those in more traditional industries.
Highlights of Industry Progress:
- Auto-enrollment gaining traction: 74% of plans now automatically enroll employees, a significant advancement for cannabis businesses.
- Participation is improving, but room to grow: Nearly 4 in 10 employees are enrolled, a strong start for an industry newer to retirement benefits.
- Engaged savers lead the way: Employees who stay enrolled defer an average of 3.4% pre-tax and 5% Roth, supported by employer contributions averaging 4%.
- Plan design sophistication: Nearly all plans offer Qualified Default Investment Alternatives, in-service distributions, and automation features like auto-escalation are becoming standard.
Why It Matters
"These numbers reflect meaningful progress for cannabis employers and their workforce," said Kirsten Curry, CEO of Leading Retirement Solutions. "Retirement benefits are no longer out of reach for this industry; they're becoming a competitive advantage."
This shift marks a turning point for cannabis businesses as retirement benefits move from being out of reach to becoming a strategic advantage for attracting talent and ensuring long-term stability. Today, these plans signal industry maturity, help employers compete for talent, and give employees tools to build long-term financial security. As the industry evolves, offering robust benefits is no longer optional; it's a clear marker of stability and long-term growth.
Regulatory Momentum: Cannabis Rescheduling
Recent federal policy efforts to reschedule cannabis are expected to effectively eliminate IRS Regulation 280E. Once removed, cannabis operators will no longer be restricted from taking standard tax deductions and credits — a change that is projected to significantly improve margins and overall financial stability. These additional resources can be redirected toward employee benefits, including the adoption and expansion of retirement plans.
This shift, combined with SECURE Act 2.0 requirements and the continued rollout of state‑mandated retirement programs, positions cannabis employers at a unique advantage. The industry now has a timely opportunity to lead in offering competitive, well‑structured retirement benefits that attract and retain top talent.
Download the full report to learn:
- Workforce participation patterns
- Plan design choices and feature adoption
- Savings and contribution behavior
- Influence of state‑mandated retirement programs
- Key drivers shaping what comes next
- And much more!
More about Leading Retirement Solutions: Leading Retirement Solutions is an industry leader in innovative retirement plan solutions for businesses nationwide. LRS focuses on improving retirement strategies by offering custom-fit solutions and non-traditional investment opportunities. Their services include plan design, plan administration, recordkeeping, consulting, and more. LRS prides itself on helping business of all sizes including fellow women-owned businesses, not-for-profit organizations, cannabis, and small businesses, through tax sheltering and employee benefits.
For more tips and information regarding retirement plans, contact [email protected].
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SOURCE Leading Retirement Solutions
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