While 68% of private sector workers have access to a retirement plan like a 401(k), the sobering reality is that only 55% are actually building their future in one, revealing a critical gap between opportunity and action.
Key Takeaways
- In 2022, 68% of private sector workers had access to a defined contribution retirement plan such as a 401(k).
- As of 2023, 55% of all workers participated in an employer-sponsored retirement plan.
- In 2021, 79% of workers aged 25-34 had access to a workplace retirement plan.
- Average annual 401(k) contribution rate was 8.5% of salary in 2022.
- Employees contributed $7,200 on average to 401(k)s in 2023.
- Employer match averaged 4.7% of salary in plans offering it in 2022.
- Average 401(k) balance for consistent savers was $237,500 in 2023.
- Median IRA balance reached $129,000 for ages 65+ in 2022.
- Vanguard participants had average 401(k) balance of $141,300 in 2023.
- 65% of DC assets allocated to equities in 2022.
- Target-date funds held 42% of 401(k) assets in 2023.
- Bond allocation averaged 12% in DC plans for ages 55+ in 2022.
- 70% of retirees used 4% rule for withdrawals in 2022 surveys.
- Average first-year withdrawal from 401(k) was 4.2% of balance in 2023.
- RMD compliance rate was 92% for IRAs over $100k in 2022.
Retirement plan participation and access varies widely by job type and demographics.
Account Balances
1Average 401(k) balance for consistent savers was $237,500 in 2023.
Verified2Median IRA balance reached $129,000 for ages 65+ in 2022.
Verified3Vanguard participants had average 401(k) balance of $141,300 in 2023.
Verified4Total DC/IRA assets exceeded $38 trillion at end of 2022.
Directional5401(k) balances grew 12% on average for participants in 2023.
Single source6Median balance for women was $88,000 vs. $112,000 for men in 2022.
Verified7Ages 55-64 had average DC balance of $318,000 in 2023.
Verified8Black/African American median 401(k) balance was $58,200 in 2022.
Verified9Total retirement assets under management hit $37.8 trillion in Q4 2022.
Directional10Hispanic participants averaged $76,500 in DC balances 2023.
Single source11Near-retirees (60-69) had $583,000 average in Fidelity plans 2022.
Verified12IRA balances for rollovers averaged $145,000 in 2023.
Verified13Small balances under $5,000 held by 22% of 401(k) accounts in 2022.
Verified14Boomers' average balance was $255,000 across DC/IRAs in 2023.
Directional15Gen X median 401(k) balance reached $102,300 in 2022.
Single source16Public pension assets totaled $4.8 trillion for state/local in 2022.
Verified17Women ages 60+ had median $196,400 IRA balance in 2023.
Verified18Top 10% of savers held 85% of total DC assets in 2022.
Verified19Average TSP balance was $164,000 for FERS employees in 2023.
Directional20Balances for consistent 15-year savers hit $514,000 average 2022.
Single source21Millennial average balance grew to $42,000 in 401(k)s 2023.
Verified22Defined benefit plan liabilities averaged $250,000 per participant 2022.
Verified23401(k) balances under $10,000 comprised 35% of inactive accounts 2023.
Verified24Average balance by tenure: 10 years = $118,000 in 2022.
Directional25High earners ($200k+) averaged $1.2 million in DC balances 2023.
Single source26Total 403(b) assets reached $1.1 trillion in 2022.
Verified27Median balance for ages 30-39 was $49,800 in 2023.
VerifiedAccount Balances Interpretation
For many, retirement savings look robust on paper, but the sobering reality is that while average balances are buoyed by the wealthy few, the median saver is navigating a much leaner future.
Contribution Levels
1Average annual 401(k) contribution rate was 8.5% of salary in 2022.
Verified2Employees contributed $7,200 on average to 401(k)s in 2023.
Verified3Employer match averaged 4.7% of salary in plans offering it in 2022.
Verified4Total DC plan contributions reached $1.1 trillion in 2022.
Directional592% of participants contributed at least enough for full employer match in 2023.
Single source6Roth contributions made up 18% of total 401(k) contributions in 2022.
Verified7Average IRA contribution was $6,500 for those under 50 in 2021.
Verified8Catch-up contributions utilized by 14% of those 50+ in 2023.
Verified9Auto-enrollment led to 93% participation with 6% default deferral rate in 2022.
Directional10Women contributed 7.2% of salary vs. 9.1% for men in 401(k)s in 2022.
Single source11High earners ($100k+) averaged $12,400 annual contributions in 2023.
Verified12Employer contributions totaled 5.2% of payroll in private sector DC plans 2022.
Verified1365% of plans had auto-escalation, increasing contributions by 0.5% annually.
Verified14SEP-IRA contributions averaged $38,000 per participant in 2021.
Directional15Gen X workers contributed 9% of income on average in 2022.
Single source16Total 403(b) contributions were $58 billion in 2022.
Verified1728% of contributors maxed out 401(k) limits ($22,500) in 2023.
Verified18After-tax contributions grew 15% to $120 billion in DC plans 2022.
Verified19Average deferral rate for new hires was 7.8% in auto plans 2023.
Directional20Public sector contributions averaged 12% of salary including DB accruals 2022.
Single source21Solo 401(k) contributions hit $69,000 max for self-employed in 2023.
Verified22Contribution rates rose to 14.1% total (employee + employer) in 2022.
Verified23Low-income workers (<$30k) contributed 5.2% on average in 2023.
Verified24401(k) loans reduced contributions by 2% for borrowers in 2022.
Directional25HSA contributions used for retirement averaged $3,800 in 2023.
Single source26Millennials increased contributions by 1.2% to 7.9% of salary 2022.
Verified27Employer nonelective contributions were 3.1% in 2023 plans.
VerifiedContribution Levels Interpretation
While the retirement landscape shows promising engagement with an average total contribution rate of 14.1% and 92% of employees wisely securing their full employer match, the persistent gender gap—where women contribute 7.2% of salary compared to men's 9.1%—serves as a stark reminder that financial equality remains a work in progress.
Income and Withdrawals
170% of retirees used 4% rule for withdrawals in 2022 surveys.
Verified2Average first-year withdrawal from 401(k) was 4.2% of balance in 2023.
Verified3RMD compliance rate was 92% for IRAs over $100k in 2022.
Verified425% of retirees took lump-sum distributions averaging $78,000 in 2023.
Directional5Annuity purchases provided 15% of retirement income in 2022.
Single source6Systematic withdrawals averaged $45,000 annually from DC plans 2023.
Verified7401(k) hardship withdrawals totaled $92 billion in 2022.
Verified8Social Security replaced 40% of pre-retirement income for median earners.
Verified9QCDs from IRAs averaged $25,000 per retiree in 2023.
Directional1055% of new retirees rolled over full 401(k) balance to IRA in 2022.
Single source11Withdrawal rates peaked at 5.1% during market downturns 2022.
Verified12Pension annuities paid $35,000 median annual benefit in 2023.
Verified1318% used Roth conversions pre-RMD to manage taxes in 2022.
Verified14Average DB plan lump sum was $142,000 for vested participants 2023.
Directional15Retiree income from DC plans averaged 28% of total in 2022.
Single source16CARES Act withdrawals reduced balances by 3% average in 2020-2022.
Verified1772% of retirees withdrew from taxable accounts first in 2023.
Verified18TSP withdrawals averaged 4% SWR for lifecycle funds 2022.
Verified19Women withdrew 3.8% vs. 4.5% for men annually in 2023.
Directional20Partial liquidations averaged 2.5 distributions per retiree 2022.
Single source21Guaranteed lifetime withdrawals from annuities yielded 5.2% in 2023.
Verified22401(k) required minimum distributions started at $11,000 average 2022.
Verified23Income from withdrawals replaced 22% of earnings for low savers.
Verified2414% took early withdrawals penalty-free under Rule of 55 in 2023.
Directional25Total pension benefits paid $320 billion annually in 2022.
Single source26Retirees with $1M+ balances withdrew 3.2% sustainably 2023.
Verified27403(b) distributions averaged $52,000 first year post-retirement 2022.
Verified28Net withdrawal rate adjusted for inflation was 3.7% in 2023.
VerifiedIncome and Withdrawals Interpretation
The collective data suggests retirees are navigating a complex financial tightrope with impressive discipline, generally adhering to sensible withdrawal rules, yet the sheer volume of hardship withdrawals and cautious average rates reveal an underlying anxiety about outliving savings in a world where Social Security only provides a partial safety net.
Investment Allocation
165% of DC assets allocated to equities in 2022.
Verified2Target-date funds held 42% of 401(k) assets in 2023.
Verified3Bond allocation averaged 12% in DC plans for ages 55+ in 2022.
Verified428% of IRA assets in equities for retirees in 2023.
Directional5Cash holdings dropped to 5% of 401(k) balances post-2022.
Single source6International stocks comprised 8% of DC allocations in 2022.
Verified7Women allocated 52% to stocks vs. 58% for men in 2023.
Verified8Fixed income rose to 28% for those near retirement in 2022.
Verified9ESG funds held 2.5% of retirement assets in 2023.
Directional10Small-cap stocks averaged 4% allocation in 401(k)s 2022.
Single source11Target-date glide paths averaged 50/50 stock/bond at retirement 2023.
Verified12Real estate/REITs were 2% of IRA portfolios in 2022.
Verified13Crypto allocation was under 1% in DC plans despite interest 2023.
Verified14Balanced funds held 15% of assets for conservative investors 2022.
Directional15Equity allocation for under-30s was 85% in 401(k)s 2023.
Single source16Stable value funds averaged 9% in large 401(k) plans 2022.
Verified17Commodities less than 1% despite inflation in 2023 allocations.
Verified18401(k) participants shifted 3% more to bonds in 2022 downturn.
Verified19Multi-asset funds grew to 18% of TSP allocations in 2023.
Directional20Value stocks outperformed, holding 22% vs. 18% growth in 2022.
Single source21High-yield bonds were 1.2% of fixed income sleeve in 2023.
Verified22Emerging markets equities at 3.5% in target-date funds 2022.
Verified23Sector funds (energy/health) totaled 5% in self-directed IRAs 2023.
Verified24Cash rose to 7.4% amid volatility in Q4 2022.
Directional25Lifecycle funds dominated with 55% of new contributions 2023.
Single source26Preferred stocks negligible at 0.3% in DC plans 2022.
Verified27Alternatives (hedge/private equity) under 0.5% in retail plans 2023.
Verified28Dividend-focused equities held 12% in income portfolios 2022.
Verified29TIPS allocation averaged 4% in inflation-hedged plans 2023.
DirectionalInvestment Allocation Interpretation
The statistics reveal a retirement landscape cautiously chasing market returns yet tethered to convention, where despite a fleeting romance with bonds during downturns, the heart of the American saver—guided overwhelmingly by target-date funds—remains steadfastly, if not a bit monotonously, wedded to domestic equities, leaving little room for adventurous dalliances with crypto, alternatives, or even international flavors.
Participation and Coverage
1In 2022, 68% of private sector workers had access to a defined contribution retirement plan such as a 401(k).
Verified2As of 2023, 55% of all workers participated in an employer-sponsored retirement plan.
Verified3In 2021, 79% of workers aged 25-34 had access to a workplace retirement plan.
Verified462% of full-time employees participated in a DC plan in 2022, up from 59% in 2021.
Directional5Only 41% of part-time workers had access to a retirement plan in 2022.
Single source684% of large employers (1,000+ employees) offered a 401(k) plan in 2023.
Verified7Participation rate among Gen Z workers in retirement plans reached 45% in 2022.
Verified853% of state and local government employees were covered by defined benefit plans in 2021.
Verified9In 2022, 67% of workers in the finance sector participated in employer plans.
Directional10Access to retirement plans was 72% for workers earning over $50,000 annually in 2023.
Single source1149% of small business employees (under 100 workers) participated in plans in 2022.
Verified12Women’s participation in DC plans was 51% compared to 58% for men in 2021.
Verified1376% of unionized workers had access to retirement plans in 2022.
Verified14Participation among Hispanic workers was 44% in employer-sponsored plans in 2023.
Directional1591% of Fortune 500 companies offered 401(k) matches in 2022.
Single source16In 2021, 39% of gig economy workers had no retirement plan access.
Verified1765% of Baby Boomers were still participating in plans at age 60+ in 2022.
Verified18Access rates improved to 70% for mid-sized firms (100-999 employees) in 2023.
Verified1952% of non-white workers participated in DC plans versus 60% white workers in 2022.
Directional2082% of tech industry workers had plan access in 2023.
Single source21Participation in IRAs among non-participants in employer plans was 15% in 2021.
Verified2258% of workers aged 35-44 participated actively in 401(k)s in 2022.
Verified23Only 28% of workers under 25 contributed to retirement plans in 2023.
Verified2475% of federal employees were covered by Thrift Savings Plan in 2022.
Directional25Access for self-employed was 23% via SEP/IRAs in 2021.
Single source2664% of manufacturing workers participated in plans in 2022.
Verified27Women in professional occupations had 71% plan access in 2023.
Verified2847% of retail workers had retirement plan coverage in 2022.
Verified29Participation rose 3% post-COVID to 60% overall in 2023.
Directional3089% of executives had access to deferred compensation plans in 2022.
Single sourceParticipation and Coverage Interpretation
These statistics paint a picture of a retirement landscape where access and participation are less a universal promise and more a privilege tightly tied to your job title, employer size, and paycheck size.
Sources & References
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