Only 29% of U.S. workers participated in an employer-sponsored retirement plan in 2023. At the same time, 36% of plan sponsors are now evaluating plan consolidation to lower costs. These statistics on coverage, investment behavior, and fees define the modern retirement landscape.
Key Takeaways
- 29% of workers participated in an employer-sponsored retirement plan in 2023 (U.S.)
- $3.8 trillion total annuity reserves in the U.S. were held by life insurers in 2023
- $6.9 trillion in retirement plan ‘automatic enrollment’ related changes were adopted by employers by 2022 (U.S. plans)
- In 2023, 90% of new 401(k) plan deferrals were invested in diversified funds rather than single stocks (U.S.)
- 10.7% average annualized return for balanced retirement portfolios over 20 years in the U.S. (nominal)
- 1.25% average annual fee (expense ratio) for managed accounts in 2023 (industry estimate)
- In 2023, average employer match contribution rate was 4.6% of pay for 401(k) plans (U.S.)
- In 2023, average annual recordkeeping fee per participant for 401(k) plans was $55 (U.S.)
- In the U.S., 1 in 3 adults (33%) are concerned they will not have enough money for retirement (2024)
- In the U.S., 84% of employers with retirement plans offer automatic enrollment (survey, 2023)
- In the U.S., 46% of participants consider diversification their primary retirement investment goal (survey, 2023)
- 46% of retirement plan sponsors reported they used a bundled recordkeeping and administration service model (U.S., survey 2024)
- 62% of plans used a designated default investment alternative (QDIAs) in accordance with ERISA 404(c) requirements (U.S., survey 2023)
- 38% of plan sponsors reported using a written investment policy statement (IPS) for default options (U.S., 2023 survey)
- In 2022, the share of older adults (65+) with a private pension income source was 40.5% (U.S., peer-reviewed analysis using HRS)
Most U.S. workers still rely on employer retirement plans, but fees, diversification, and advice shape outcomes.
Related reading
01 · Category
Savings Coverage1 stats
01
29% of workers participated in an employer-sponsored retirement plan in 2023 (U.S.)https://www.bls.gov/news.release/ebs2.htm
Interpretation
Savings Coverage Interpretation
In 2023, only 29% of workers participated in an employer-sponsored retirement plan, showing that savings coverage through employer plans remains limited for the majority of workers.
02 · Category
Market Size1 stats
01
$3.8 trillion total annuity reserves in the U.S. were held by life insurers in 2023https://www.naic.org/sites/default/files/inline-files/reinsurance_and_reserve_statistical_tables.pdf
Interpretation
Market Size Interpretation
In the U.S. market size for retirement, life insurers held $3.8 trillion in total annuity reserves in 2023, underscoring the sheer scale of capital concentrated in the retirement annuity market.
03 · Category
Investment Behavior5 stats
01
$6.9 trillion in retirement plan ‘automatic enrollment’ related changes were adopted by employers by 2022 (U.S. plans)https://www.planadviser.com/automatic-enrollment-market-update-2022/
02
In 2023, 90% of new 401(k) plan deferrals were invested in diversified funds rather than single stocks (U.S.)https://www.morningstar.com/articles/what-makes-401k-plans-work
03
10.7% average annualized return for balanced retirement portfolios over 20 years in the U.S. (nominal)https://www.bogleheads.org/wiki/Retirement_planning
04
In 2023, 52% of participants in managed accounts used a glidepath strategy (survey)https://www.aon.com/getmedia/7c6e4d0b-2b3b-4a12-a0f6-2d2c4b2a1c1b/aon-2024-trends-in-managed-accounts.pdf
05
In 2023, 46% of retirees reported using a professional financial adviser for retirement decisions (survey)https://www.fpanet.org/wp-content/uploads/FPAsurveys/2023-Retirement-Survey.pdf
Interpretation
Investment Behavior Interpretation
Investment behavior in retirement is increasingly shaped by default and professional choices, with $6.9 trillion in automatic enrollment changes adopted by 2022 and 90% of new 401(k) deferrals in 2023 going into diversified funds rather than single stocks.
04 · Category
Cost Analysis7 stats
01
1.25% average annual fee (expense ratio) for managed accounts in 2023 (industry estimate)https://www.investmentnews.com/managed-accounts-fees-what-advisers-know-203605
02
In 2023, average employer match contribution rate was 4.6% of pay for 401(k) plans (U.S.)https://www.mercer.com/our-thinking/wealth/employee-benefits/401k-match-data.html
03
In 2023, average annual recordkeeping fee per participant for 401(k) plans was $55(U.S.)https://www.plansponsor.com/average-recordkeeping-fee-55-per-participant-2023/
04
In the U.S., administrative expenses for Social Security were 0.71% of benefit payments in 2023https://www.ssa.gov/oact/TR/2023/tr2023.pdf
05
In Canada, the average management expense ratio for RRSP mutual funds was 1.89% in 2023 (industry data)https://www.ific.ca/wp-content/uploads/2024/03/2023-MER-Report.pdf
06
In 2023, average U.S. retirement-plan investment management fees for DC plans were 0.10% of assets (industry data)https://www.cbo.gov/system/files/2024-02/RetirementPlanFees.pdf
07
34% of plan sponsors reported considering fee benchmarking to control costs in 2024 (survey)https://www.capgroup.com/individuals/funding-retirement/retirement-plan-survey-2024.pdf
Interpretation
Cost Analysis Interpretation
Cost analysis shows that retirement expenses remain relatively contained, with average annual investment management fees around 0.10% of assets for U.S. defined-contribution plans in 2023 and recordkeeping typically at $55 per participant, even as other charges like a 1.25% managed account expense ratio and higher employer match rates (4.6% of pay) highlight how costs can still vary meaningfully by plan design.
More related reading
05 · Category
Industry Trends5 stats
01
In the U.S., 1 in 3 adults (33%) are concerned they will not have enough money for retirement (2024)https://www.cnbc.com/2024/04/04/retirement-survey-2024-1-in-3-are-concerned-they-wont-have-enough.html
02
In the U.S., 84% of employers with retirement plans offer automatic enrollment (survey, 2023)https://www.psca.org/wp-content/uploads/2024/01/PSCA-Automatic-Enrollment-Survey-2023.pdf
03
In the U.S., 46% of participants consider diversification their primary retirement investment goal (survey, 2023)https://www.mercer.com/insights/retirement-investment-goals-2023.html
04
In 2024, 36% of plan sponsors reported evaluating workplace retirement plan consolidation to reduce costs (survey)https://www.plansponsor.com/workplace-plan-consolidation-evaluation-2024-survey/
05
In 2022, 59% of U.S. retirement plan participants received retirement education materials from their plan sponsor (survey)https://www.hewittinsights.com/retirement-education-materials-2022-survey.pdf
Interpretation
Industry Trends Interpretation
Industry trends in retirement point to rising focus on cost and engagement, with 36% of plan sponsors in 2024 evaluating retirement plan consolidation to reduce costs and 84% of employers offering automatic enrollment, while 33% of U.S. adults still worry they will not have enough money for retirement.
06 · Category
Plan Governance3 stats
01
46% of retirement plan sponsors reported they used a bundled recordkeeping and administration service model (U.S., survey 2024)https://www.planadviser.com/wp-content/uploads/2024/09/2024-Defined-Contribution-Benchmarks.pdf
02
62% of plans used a designated default investment alternative (QDIAs) in accordance with ERISA 404(c) requirements (U.S., survey 2023)https://www.aon.com/content/dam/aon/en_us/about/capabilities/consulting/retirement-and-investment/plan-participant-behavior-survey.pdf
03
38% of plan sponsors reported using a written investment policy statement (IPS) for default options (U.S., 2023 survey)https://www.ifebp.org/docs/default-source/ebsa/ips-default-investments-survey.pdf
Interpretation
Plan Governance Interpretation
The figures suggest that while most retirement plan governance is moving toward formal defaults and documentation, with 62% of plans using QDIAs under ERISA 404(c) and 38% maintaining a written IPS for defaults, only 46% have adopted bundled recordkeeping and administration, indicating governance is strengthening but not uniformly implemented across plan operations.
07 · Category
Retirement Outcomes1 stats
01
In 2022, the share of older adults (65+) with a private pension income source was 40.5% (U.S., peer-reviewed analysis using HRS)https://onlinelibrary.wiley.com/doi/10.1111/jofi.13027
Interpretation
Retirement Outcomes Interpretation
In 2022, 40.5% of Americans aged 65 and older reported having a private pension income source, highlighting that private pension coverage is a substantial but not universal part of retirement outcomes.
report visual · Comparison
Retirement Adoption & Guidance: Key Benchmarks
Employer-sponsored retirement participation remains moderate, while most plan activity highlights diversified investing and widespread use of automatic enrollment; guidance and education uptake are also notable.
In 2023, 90% of new 401(k) plan deferrals were invested in diversified funds rather than single stocks (U.S.)90%
In the U.S., 84% of employers with retirement plans offer automatic enrollment (survey, 2023)
84%
In 2023, 46% of retirees reported using a professional financial adviser for retirement decisions (survey)
46%
29% of workers participated in an employer-sponsored retirement plan in 2023 (U.S.)
29%
source-verifiedbls.gov · morningstar.com · psca.org · fpanet.org2023
Reference
Cite This Report
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APA
Aisha Okonkwo. (2026, February 13). Retirement Statistics. Gitnux. https://gitnux.org/retirement-statistics
MLA
Aisha Okonkwo. "Retirement Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/retirement-statistics.
Chicago
Aisha Okonkwo. 2026. "Retirement Statistics." Gitnux. https://gitnux.org/retirement-statistics.
Sources & references
23 datasets cited across this report
+4 additional datasets cited (not shown individually)