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U.S. Retirement Assets Reach Major Milestone

As of June 30, 2025, U.S. retirement assets have achieved a remarkable milestone, accumulating to a staggering $45.8 trillion. This figure represents a significant increase of 6.0 percent since March 2025, highlighting the growing importance of retirement savings in the financial landscape of American households. According to a report provided by the Investment Company Institute (ICI), these retirement assets now constitute a noteworthy 34 percent of the total household financial assets within the United States.

Breakdown of Retirement Assets

The composition of these assets reveals a diverse landscape of retirement vehicles. Individual retirement accounts (IRAs) alone account for approximately $18.0 trillion, marking a 7.0 percent rise from the first quarter of the year. Meanwhile, defined contribution (DC) plan assets, including popular plans such as 401(k)s, totaled $13.0 trillion, which is an increase of 6.4 percent from March 31, 2025.

Additionally, government-defined benefit (DB) plans, inclusive of federal, state, and local programs, held around $9.3 trillion in assets, reflecting a 4.9 percent growth since the end of the previous quarter. On the other hand, private-sector DB plans maintained assets amounting to $3.0 trillion, alongside annuity reserves outside of retirement accounts reaching $2.5 trillion.

Defined Contribution Plans

A notable part of this increase stemmed from the over $9.3 trillion within employer-sponsored DC retirement plans as of June 30, 2025. Among these, 401(k) plans represent a significant portion, holding $9.3 trillion in assets. This is further complemented by $780 billion contributed through other private-sector DC plans, $1.5 trillion via 403(b) plans, $506 billion in 457 plans, and $1.0 trillion in the Federal Employees Retirement System's Thrift Savings Plan (TSP).

In the realm of 401(k) plans, mutual funds managed roughly $5.7 trillion, indicating their preference among investors, representing 62 percent of the total assets held. A closer look at the types of funds reveals that equity funds are the most favored, accumulating around $3.5 trillion, trailed by hybrid funds, which include target date funds, at $1.5 trillion.

Individual Retirement Accounts (IRAs)

The end of the second quarter also brought significant growth to IRAs, which reached $18.0 trillion in assets. The data showed that approximately 39 percent of IRA assets, equating to $6.9 trillion, were invested in mutual funds. Furthermore, out of the $18.0 trillion in assets, equity funds again took the lead with $4.0 trillion, followed by hybrid funds standing at $1.1 trillion.

Broader Implications

When considering total retirement entitlements—which encompass financial assets, additional assets, and unfunded liabilities of DB plans—these hit $49.9 trillion as of June 30, 2025. This figure includes the aforementioned $45.8 trillion in financial assets but also factors in $185 billion in other assets and $3.9 trillion of unfunded liabilities. Notably, retirement entitlements represent about 37 percent of all U.S. households' financial assets, underscoring the essential role that retirement savings play within the broader economic framework.

The report further highlights the disparity in unfunded liabilities among different sectors; specifically, these liabilities pose a more considerable challenge for government DB plans, with 30 percent of benefit entitlements for state and local government plans being unfunded compared to 5 percent for private-sector plans.

As the financial markets continue to evolve, these figures illustrate a growing trend towards prioritizing retirement savings, potentially leading to improved financial security for future retirees. With increasing awareness and a commitment to saving for retirement, Americans seem on track to bolster their financial foundations for years to come.

For those looking to further explore these statistics, complete quarterly retirement data tables are accessible at "The U.S. Retirement Market, Second Quarter 2025".