GITNUXREPORT 2025

Pension Statistics

U.S. pension coverage declining; median benefits insufficient, raising retirement concerns.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Public sector pension plans are more fully funded than private sector plans, with median funding ratios over 80%

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About 50% of public pension plans are considered at risk of significant underfunding

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The government debt of pension liabilities in some countries exceeds 100% of GDP

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The overall global pension market share held by government-run pension schemes is over 70%

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The U.S. pension industry manages over $10 trillion in assets

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Pension fund deficits worldwide have reached over $2 trillion

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The global pension market is expected to grow at a CAGR of 4% through 2030

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In Canada, the Public Service Pension Plan has assets totaling over CAD 300 billion

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Pension funds in Asia are among the fastest-growing globally, with investments in infrastructure and real estate increasing

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About 75% of private-sector employees lack access to employer-sponsored pension plans

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The number of pension plans in the U.S. has declined by over 30% in the last two decades

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Only 20% of American workers have access to a traditional defined benefit pension plan

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About 62% of American private-sector workers are covered by some form of pension or retirement plan

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In Europe, roughly 60% of working-age adults have some form of pension savings

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The Pension Benefit Guaranty Corporation insures over 1,300 pension plans covering 10 million participants

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The percentage of workers contributing to a pension or retirement plan in the U.S. increased from 50% in 2000 to 61% in 2020

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Only about 15% of Americans age 65 and older have no pension or retirement savings

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The number of new pension plans established in last 10 years has decreased by nearly 50%

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Around 67% of workers aged 45-64 are eligible for pension benefits from their current employer

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The proportion of small businesses offering pension plans is less than 20%

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Only about 10% of Americans have a pension that is fully funded by their employer

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The average age of retirement for pensioners is 63 years old

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The median age at which Americans start claiming Social Security is 62 years

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Deferred pension benefits are increasingly common, with many workers choosing to postpone retirement

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The average age of retirement in the European Union is approximately 64 years

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The average age at which U.S. workers retire is approximately 62 years old

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Approximately 48 million Americans receive some form of pension or retirement benefit

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The median annual pension benefit for American retirees is approximately $18,500

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The average lifespan after retirement for pension recipients is around 20 years

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The average monthly pension payout in the U.S. is approximately $1,500

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The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to regulate pension plans

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The Social Security program provides retirement benefits to over 65 million Americans

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The average contribution rate for pension plans in the U.S. is about 6% of wages

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The maximum Social Security retirement benefit for 2023 is $3,627 per month

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Approximately 40% of retirees rely predominantly on Social Security as their main source of income

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The average replacement rate of pension income compared to pre-retirement earnings is around 45%

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The average annual return on pension fund investments has been approximately 7% over the last decade

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The median pension payout for government pensioners is about $2,500 per month

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Pensions constitute the primary retirement income source for approximately 35% of older Americans

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The average pension wealth per retiree is approximately $250,000

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Pension contribution limits in the U.S. for 2023 are set at $22,500 for 401(k) plans, with a catch-up contribution of $7,500 for those age 50+

Statistic 42

The gro wing shift from defined benefit to defined contribution plans has led to increased individual retirement planning responsibilities

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The average pension benefit replacement rate varies significantly by country, with some countries providing over 60%, and others below 40%

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In Australia, the Superannuation guarantee requires employers to contribute at least 10.5% of an employee’s earnings to a superannuation fund

Statistic 45

The percentage of Americans over 65 years old relying on pensions or Social Security for most of their income increased by 15% over the past decade

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Key Highlights

Approximately 48 million Americans receive some form of pension or retirement benefit
The U.S. pension industry manages over $10 trillion in assets
The median annual pension benefit for American retirees is approximately $18,500
About 75% of private-sector employees lack access to employer-sponsored pension plans
The average lifespan after retirement for pension recipients is around 20 years
The number of pension plans in the U.S. has declined by over 30% in the last two decades
Only 20% of American workers have access to a traditional defined benefit pension plan
The average monthly pension payout in the U.S. is approximately $1,500
About 62% of American private-sector workers are covered by some form of pension or retirement plan
The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to regulate pension plans
The Social Security program provides retirement benefits to over 65 million Americans
The average age of retirement for pensioners is 63 years old
Pension fund deficits worldwide have reached over $2 trillion

Did you know that while nearly 48 million Americans rely on pensions or retirement benefits, only 20% of private-sector workers have access to traditional pension plans, highlighting a shifting landscape that could reshape your financial future?

Government and Public Pension Programs

Public sector pension plans are more fully funded than private sector plans, with median funding ratios over 80%
About 50% of public pension plans are considered at risk of significant underfunding
The government debt of pension liabilities in some countries exceeds 100% of GDP
The overall global pension market share held by government-run pension schemes is over 70%

Government and Public Pension Programs Interpretation

While public sector pension plans boast healthier funding with median ratios over 80%, the fact that many face potential underfunding risks or debts exceeding national GDP highlights the urgent need for sustainable reforms in a global pension landscape dominated by government schemes accounting for over 70%.

Pension Market Size and Global Trends

The U.S. pension industry manages over $10 trillion in assets
Pension fund deficits worldwide have reached over $2 trillion
The global pension market is expected to grow at a CAGR of 4% through 2030
In Canada, the Public Service Pension Plan has assets totaling over CAD 300 billion
Pension funds in Asia are among the fastest-growing globally, with investments in infrastructure and real estate increasing

Pension Market Size and Global Trends Interpretation

With over $10 trillion in assets and a global deficit surpassing $2 trillion, the pension industry is both a financial behemoth and a ticking time bomb, highlighting the urgent need for sustainable growth amid rapid regional innovations and demographic shifts.

Pension Plan Coverage and Participation

About 75% of private-sector employees lack access to employer-sponsored pension plans
The number of pension plans in the U.S. has declined by over 30% in the last two decades
Only 20% of American workers have access to a traditional defined benefit pension plan
About 62% of American private-sector workers are covered by some form of pension or retirement plan
In Europe, roughly 60% of working-age adults have some form of pension savings
The Pension Benefit Guaranty Corporation insures over 1,300 pension plans covering 10 million participants
The percentage of workers contributing to a pension or retirement plan in the U.S. increased from 50% in 2000 to 61% in 2020
Only about 15% of Americans age 65 and older have no pension or retirement savings
The number of new pension plans established in last 10 years has decreased by nearly 50%
Around 67% of workers aged 45-64 are eligible for pension benefits from their current employer
The proportion of small businesses offering pension plans is less than 20%
Only about 10% of Americans have a pension that is fully funded by their employer

Pension Plan Coverage and Participation Interpretation

Despite a modest rise in participation, the stark reality remains: with fewer pension plans, dwindling employer coverage, and only a small fraction of Americans with fully funded pensions, millions are facing retirement less prepared than ever—highlighting the urgent need to rethink our collective approach to securing financial futures.

Retirement Age, Contributions, and Economic Impact

The average age of retirement for pensioners is 63 years old
The median age at which Americans start claiming Social Security is 62 years
Deferred pension benefits are increasingly common, with many workers choosing to postpone retirement
The average age of retirement in the European Union is approximately 64 years
The average age at which U.S. workers retire is approximately 62 years old

Retirement Age, Contributions, and Economic Impact Interpretation

As Americans and Europeans edge closer to 62 and 63 respectively, it's clear that the age of retirement is creeping upward, perhaps in pursuit of a little extra security—just don’t forget, the future worker isn’t waiting around forever.

Retirement Benefits and Payouts

Approximately 48 million Americans receive some form of pension or retirement benefit
The median annual pension benefit for American retirees is approximately $18,500
The average lifespan after retirement for pension recipients is around 20 years
The average monthly pension payout in the U.S. is approximately $1,500
The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to regulate pension plans
The Social Security program provides retirement benefits to over 65 million Americans
The average contribution rate for pension plans in the U.S. is about 6% of wages
The maximum Social Security retirement benefit for 2023 is $3,627 per month
Approximately 40% of retirees rely predominantly on Social Security as their main source of income
The average replacement rate of pension income compared to pre-retirement earnings is around 45%
The average annual return on pension fund investments has been approximately 7% over the last decade
The median pension payout for government pensioners is about $2,500 per month
Pensions constitute the primary retirement income source for approximately 35% of older Americans
The average pension wealth per retiree is approximately $250,000
Pension contribution limits in the U.S. for 2023 are set at $22,500 for 401(k) plans, with a catch-up contribution of $7,500 for those age 50+
The gro wing shift from defined benefit to defined contribution plans has led to increased individual retirement planning responsibilities
The average pension benefit replacement rate varies significantly by country, with some countries providing over 60%, and others below 40%
In Australia, the Superannuation guarantee requires employers to contribute at least 10.5% of an employee’s earnings to a superannuation fund
The percentage of Americans over 65 years old relying on pensions or Social Security for most of their income increased by 15% over the past decade

Retirement Benefits and Payouts Interpretation

With nearly 48 million Americans depending on pensions averaging just $18,500 annually—and a meager 20-year horizon post-retirement—it's clear that unless future plans are as well-funded as their dreams, many may find their golden years more tarnished than golden.