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Record High in US Retirement Assets

Recent data from the Investment Company Institute (ICI) indicates that total retirement assets in the United States have hit an all-time high of $48.1 trillion as of September 30, 2025. This represents a notable 4.5% increase from the previous June, showcasing the growing dedication of American households to long-term retirement savings.

Breakdown of Retirement Assets

Retirement assets now account for approximately 34% of all household financial assets in the country. The composition of these assets reveals significant participation in various retirement vehicles:

• - Individual Retirement Accounts (IRAs): These accounts held $18.9 trillion, reflecting a 5.2% growth since the second quarter.
• - Defined Contribution (DC) Plans: Accounts like 401(k) plans totaled around $13.9 trillion, marking a 5.1% increase during the same period.
• - Defined Benefit (DB) Plans: Government plans, including those for federal, state, and local employees, reported $9.5 trillion, with a 3.1% rise from June.
• - Private-sector DB plans held $3.1 trillion, while annuity reserves outside of retirement accounts made up another $2.6 trillion.

Participation Rates Drive Growth

Shelly Antoniewicz, Chief Economist at ICI, attributed this remarkable growth to the increased participation rates in retirement accounts like IRAs and 401(k) plans over the past 25 years. Despite market fluctuations, Americans are engaging more with these financial tools, showcasing a commitment to building secure financial futures.

“Over the years, these plans have proven crucial in securing the retirement needs of families,” Antoniewicz stated.

Overview of DC Plans

As of September 30, 2025, $13.9 trillion was held in employer-sponsored DC plans, with a significant portion—about $10 trillion—in 401(k) accounts. In addition to 401(k)s, another $875 billion was invested in private-sector DC options, with $1.5 trillion in 403(b) plans and $532 billion in 457 plans. The Thrift Savings Plan (TSP) for federal employees accounted for $1.1 trillion at the end of the third quarter.

Mutual funds played a crucial role in this arena, managing approximately 58% of the assets in 401(k) plans, equating to $5.8 trillion. Interestingly, the most prevalent asset type among these plans were equity funds, totaling around $3.4 trillion.

Contributions to IRAs

IRAs showcased an impressive snapshot of American savings habits, holding $18.9 trillion in assets. Of these, 38% were allocated to mutual funds. The breakdown of IRA investments revealed that equity funds comprised the largest segment, further emphasizing the diversification of American investments into their retirement plans.

Unfunded Liabilities and Entitlements

While the total US retirement entitlements registered at $52.1 trillion—including $48.1 trillion in financial assets—a looming concern lies with the unfunded liabilities of DB plans, impacting government plans more significantly than private ones. For instance, unfunded liabilities represented 29% of benefit entitlements for governmental DB plans, compared to 3% for private-sector plans.

Conclusion

The latest data provide a clear picture of not only the health of the US retirement system but also the evolving mindset of American households towards saving for the future. With fluctuations in the market and the continuous growth of retirement assets, Americans are positioned better than ever to secure their financial futures. As we move forward, staying informed and engaged with these retirement funds will be paramount for households across the nation.