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.)
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 2023
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)
02
In 2023, 90% of new 401(k) plan deferrals were invested in diversified funds rather than single stocks (U.S.)
03
10.7% average annualized return for balanced retirement portfolios over 20 years in the U.S. (nominal)
04
In 2023, 52% of participants in managed accounts used a glidepath strategy (survey)
05
In 2023, 46% of retirees reported using a professional financial adviser for retirement decisions (survey)
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)
02
In 2023, average employer match contribution rate was 4.6% of pay for 401(k) plans (U.S.)
03
In 2023, average annual recordkeeping fee per participant for 401(k) plans was $55(U.S.)
04
In the U.S., administrative expenses for Social Security were 0.71% of benefit payments in 2023
05
In Canada, the average management expense ratio for RRSP mutual funds was 1.89% in 2023 (industry data)
06
In 2023, average U.S. retirement-plan investment management fees for DC plans were 0.10% of assets (industry data)
07
34% of plan sponsors reported considering fee benchmarking to control costs in 2024 (survey)
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)
02
In the U.S., 84% of employers with retirement plans offer automatic enrollment (survey, 2023)
03
In the U.S., 46% of participants consider diversification their primary retirement investment goal (survey, 2023)
04
In 2024, 36% of plan sponsors reported evaluating workplace retirement plan consolidation to reduce costs (survey)
05
In 2022, 59% of U.S. retirement plan participants received retirement education materials from their plan sponsor (survey)
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)
02
62% of plans used a designated default investment alternative (QDIAs) in accordance with ERISA 404(c) requirements (U.S., survey 2023)
03
38% of plan sponsors reported using a written investment policy statement (IPS) for default options (U.S., 2023 survey)
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)
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 · attribution is report-level
+4 additional datasets cited (not shown individually)