While a staggering $38.2 trillion sits in U.S. retirement accounts, a deep dive into the latest data reveals a landscape of impressive growth shadowed by persistent gaps in coverage, savings rates, and preparedness that define the real state of the industry today.
Key Takeaways
- As of Q4 2023, total retirement assets in the US reached $38.2 trillion, with defined contribution plans holding $10.1 trillion.
- IRAs accounted for 32% of total US retirement assets at $12.3 trillion in 2023.
- 401(k) plans grew to $7.4 trillion in assets by end of 2022, a 13% increase YoY.
- 55% of US workers aged 25-64 participated in employer-sponsored retirement plans in 2023.
- Participation rate in 401(k) plans among eligible workers reached 68% in 2022.
- 89 million Americans had DC plan accounts in 2023.
- Average employee contribution rate to 401(k) was 7.4% in 2023.
- Employer match averaged 4.7% of salary in DC plans 2023.
- Total 401(k) contributions reached $580 billion in 2022.
- Equities comprised 68% of 401(k) assets in Q4 2023.
- Target-date funds held 28% of DC plan assets in 2023.
- Bonds allocation in retirement plans averaged 15% in 2023.
- Average 401(k) balance was $134,000 for participants in 2023.
- Median retirement account balance for ages 55-64 was $185,000 in 2023.
- 52% of retirees had over $250,000 in savings in 2023 survey.
The US retirement industry manages over $38 trillion in assets with broad but unequal participation.
Assets Under Management
1As of Q4 2023, total retirement assets in the US reached $38.2 trillion, with defined contribution plans holding $10.1 trillion.
Verified2IRAs accounted for 32% of total US retirement assets at $12.3 trillion in 2023.
Verified3401(k) plans grew to $7.4 trillion in assets by end of 2022, a 13% increase YoY.
Verified4Total DC plan assets hit $9.6 trillion in Q2 2024, per ICI data.
Directional5Employer-sponsored retirement plans managed $35.8 trillion in 2023.
Single source6Annuity assets in retirement plans reached $2.1 trillion in 2023.
Verified7403(b) and 457 plans held $1.2 trillion combined in 2023.
Verified8Pension funds under management totaled $6.8 trillion in private sector US plans Q4 2023.
Verified9Target-date fund assets in DC plans exceeded $3.2 trillion by mid-2024.
Directional10US retirement industry AUM grew at 8.2% CAGR from 2018-2023.
Single source11529 plans assets stood at $450 billion in 2023.
Verified12Cash balance plans assets increased to $500 billion in 2022.
Verified13Total US household retirement savings hit $37.8 trillion in 2023.
Verified14DC plans represented 27% of total retirement assets in 2023.
Directional15IRA assets grew 12% YoY to $13.2 trillion in Q1 2024.
Single source16Total retirement assets grew 9.4% in 2023 despite market volatility.
Verified17Defined benefit plans held $4.1 trillion in assets Q4 2023.
Verified18Governmental DC plans assets at $1.8 trillion in 2023.
Verified19Hybrid plans like cash balance totaled $650 billion AUM 2023.
Directional20US mutual funds for retirement $22.5 trillion in 2023.
Single source21SEP IRA assets $400 billion, SIMPLE IRA $180 billion in 2023.
Verified22Private pension assets $35 trillion globally, US 60% share 2023.
Verified23401(k) assets per participant averaged $112,900 in 2023.
Verified24Roth IRA assets surpassed $1 trillion in 2023.
Directional25Total AUM in advisor-sold retirement products $15 trillion 2023.
Single sourceAssets Under Management Interpretation
America's retirement nest egg has swollen to a staggering $38.2 trillion, proving that collectively, we're incredibly diligent at stashing cash for the future, even if individually we're still nervously wondering if that coffee we just bought will break the budget.
Contribution Statistics
1Average employee contribution rate to 401(k) was 7.4% in 2023.
Verified2Employer match averaged 4.7% of salary in DC plans 2023.
Verified3Total 401(k) contributions reached $580 billion in 2022.
Verified4IRA contributions totaled $52 billion in 2023 tax year.
Directional5Average annual 401(k) contribution per participant was $7,400 in 2023.
Single source6Safe harbor contributions averaged 3.8% in plans offering them 2023.
Verified7Roth contributions in 401(k)s made up 25% of total in 2023.
Verified8Contribution limits for 401(k) set at $23,000 for under 50s in 2024.
Verified9Catch-up contributions averaged $1,200 per eligible participant 2023.
Directional10Auto-escalation features in 50% of plans boosted savings by 1.5%.
Single source11Total DC plan contributions grew 9% YoY to $650 billion in 2023.
Verified12Women contributed 6.8% of salary vs 8.1% for men in 401(k)s 2023.
Verified13Millennials average contribution rate was 8.2% in 2023.
Verified14Non-qualified deferred comp contributions hit $45 billion in 2022.
Directional1560% of plans had automatic contribution increases in 2023.
Single source16Average account balance grew due to $480 median contribution 2023.
Verified17Average deferral rate hit 8.0% with auto-features in 2023.
Verified18Total contributions to IRAs $65 billion including rollovers 2023.
Verified19Employer contributions $200 billion to DC plans in 2023.
Directional20Profit-sharing contributions averaged 5.2% in offering plans 2023.
Single source21Contribution rates for ages 25-34 averaged 6.5% in 2023.
Verified22SECURE 2.0 increased catch-up to $10k for 60+ starting 2025.
Verified2345% of participants maxed employer match in 2023.
Verified24Average household retirement contributions $12,000 annually 2023.
Directional25Student loan match provisions in 15% of plans 2023.
Single source26Deferral rates post-tax up 20% since 2020 to 2.1% 2023.
Verified27Small plan contributions grew 11% YoY in 2023.
Verified28Average first-year contribution $4,200 for new enrollees 2023.
VerifiedContribution Statistics Interpretation
Despite Americans collectively funneling hundreds of billions into retirement accounts, the fact that nearly half are still leaving free employer money on the table suggests our relationship with saving is a bit like ordering a lavish dessert but skipping the included side of fries.
Investment Allocation
1Equities comprised 68% of 401(k) assets in Q4 2023.
Verified2Target-date funds held 28% of DC plan assets in 2023.
Verified3Bonds allocation in retirement plans averaged 15% in 2023.
Verified4Cash equivalents made up 5% of IRA portfolios in 2023.
Directional5ESG funds in DC plans grew to 4% allocation by 2023.
Single source6Domestic stocks 45%, international 23% in average 401(k) 2023.
Verified7Stable value funds allocation was 7% in large DC plans 2023.
Verified8Real estate investments in pensions were 3.2% in 2023.
Verified9Average glide path in TDFs shifted to 55% equity for 2050 vintage 2023.
Directional10Crypto allocations in retirement plans under 1% but growing 200% YoY 2023.
Single source11Fixed income duration averaged 6.2 years in pension portfolios 2023.
Verified12Alternatives comprised 12% of defined benefit plan assets 2023.
Verified13Company stock allocation dropped to 2.5% in 401(k)s 2023.
Verified14Multi-asset funds held 18% of IRA assets in 2023.
Directional15Equity allocation dropped to 65% amid rate hikes in 2023.
Single source16International equities 22% of DC assets, up from 18% in 2020.
Verified17Fixed income rose to 18% in conservative TDFs 2023.
Verified18GICs and stable value yielded 3.1% average in 2023.
Verified19Private equity in pensions 8%, up 50% since 2018.
Directional20Commodity allocations averaged 1.5% in large plans 2023.
Single source21Lifecycle funds 32% of total DC assets in 2023.
Verified22Emerging markets allocation 5% in average IRA 2023.
Verified23Hedge funds in DB plans 4.2% allocation 2023.
Verified24Sustainable investing options in 55% of DC menus 2023.
DirectionalInvestment Allocation Interpretation
The collective retirement plan conscience is having a very typical, data-driven identity crisis, swearing allegiance to equities while flirting with alternatives and nervously eyeing crypto from across the room.
Plan Participation
155% of US workers aged 25-64 participated in employer-sponsored retirement plans in 2023.
Verified2Participation rate in 401(k) plans among eligible workers reached 68% in 2022.
Verified389 million Americans had DC plan accounts in 2023.
Verified4Coverage rate for private sector workers was 53% for retirement plans in 2023.
Directional5Women’s participation in DC plans was 62% vs 65% for men in 2022.
Single source678% of state and local government workers were covered by pensions in 2023.
Verified7Auto-enrollment increased 401(k) participation by 15% on average since 2010.
Verified845% of gig workers had no retirement plan access in 2023 survey.
Verified9Hispanic workers had 42% retirement plan coverage vs 62% for whites in 2022.
Directional1092% of Fortune 500 companies offer 401(k) plans in 2024.
Single source11Participation among Gen Z workers in DC plans was 49% in 2023.
Verified12Union workers had 87% pension coverage vs 15% non-union in 2023.
Verified13Small businesses (<100 employees) had 38% plan sponsorship rate in 2023.
Verified14401(k) plan participants numbered 70 million in 2023.
Directional15Average number of DC plans per employer was 1.2 in 2022.
Single source1678 million private sector workers eligible for DC plans 2023.
Verified17Participation gap closed to 5% between high/low income workers 2023.
Verified1885% of large employers (>5k employees) auto-enroll in 401(k)s 2023.
Verified19Black workers participation rate 58% vs overall 66% in 2023.
Directional2032% of part-time workers had access to retirement plans 2023.
Single source21New hires participation reached 75% within first year 2023.
Verified22Public sector coverage 89% vs private 50% in 2023.
Verified23401(k) plans with auto-enrollment grew to 65% of total 2023.
Verified24Self-employed participation in SEP IRAs 25% in 2023.
Directional25Boomer participation declining as they retire, down 8% since 2018.
Single source2670% of plans now offer Roth options, boosting participation 3%.
VerifiedPlan Participation Interpretation
The retirement plan landscape reveals a system that works brilliantly for the fortunate few—like union members, large company employees, and the auto-enrolled—yet remains a rickety, partial scaffold for nearly everyone else, leaving a precarious gap for gig workers, minorities, and small business employees.
Retirement Outcomes and Trends
1Average 401(k) balance was $134,000 for participants in 2023.
Verified2Median retirement account balance for ages 55-64 was $185,000 in 2023.
Verified352% of retirees had over $250,000 in savings in 2023 survey.
Verified4Replacement rate averaged 42% from DC plans for median earner 2023.
Directional5401(k) withdrawal rate averaged 4.2% in first year of retirement 2023.
Single source6Lump-sum distributions from pensions totaled $120 billion in 2022.
Verified735% of retirees planned to work part-time due to insufficient savings 2023.
Verified8IRA rollovers reached $700 billion in 2023.
Verified9Annuity purchases in retirement plans up 15% to $25 billion 2023.
Directional1028% of workers expect to retire after 65, up from 20% in 2010.
Single source11Required Minimum Distributions averaged $45,000 per IRA holder 2023.
Verified12Pension benefit accruals totaled $300 billion annually in 2023.
Verified13401(k) hardship withdrawals hit $90 billion in 2022.
Verified14Average Social Security benefit $1,800/month supplemented DC by 40%.
Directional15Retirement confidence index at 73% in 2023 EBRI survey.
Single source16Loan balances in 401(k)s averaged 8% of participant balances 2023.
Verified1765% of DC assets from participants 50+ in 2023 demographics.
Verified18DB plan funding ratio averaged 102% in 2023.
Verified19Early retirement claims due to COVID rose 12% in 2020-2023.
Directional20Lifetime DC savings for average worker projected at $1.2 million 2023.
Single source21Median 401(k) balance $35,000 across all ages 2023.
Verified22Ages 65+ average balance $272,000 in 401(k)/IRA 2023.
Verified2340% of workers have less than $50k saved for retirement 2023.
Verified24Annuity income replaced 25% of pre-retirement pay average 2023.
Directional25RMD compliance 92% among required IRA owners 2023.
Single source26Pension lump sums averaged $150,000 per recipient 2023.
Verified2755% plan to annuitize some DC savings in retirement 2023.
Verified28Retirement age expectation rose to 67 from 62 in 2000s.
Verified29DC plans returned 12.5% average in 2023.
Directional30Hardship withdrawal requests down 10% post-COVID 2023.
Single source31401(k) loans outstanding $110 billion in 2023.
Verified32DB to DC conversions affected 2 million workers 2010-2023.
Verified33Pension underfunding $250 billion in private sector 2023.
VerifiedRetirement Outcomes and Trends Interpretation
The retirement planning industry presents a paradox of impressive aggregate sums and robust market returns existing alongside a sobering reality where median savings are modest, replacement rates are precarious, and a significant portion of the population is patching together their golden years with part-time work, hopeful rollovers, and a prayer that their 4.2% withdrawal rate holds.
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