Did you ever wish you had access to simple statistics about workplace retirement plans, like the number of participants in defined benefit pension plans, defined contribution plans, and individual retirement accounts? Perhaps you’ve been thinking about average 401(k) balances based on age, tenure, number of plan participants, or assets. If so, you’re going to appreciate this fact sheet from EBRI’s Retirement Security Research Center.
We also include links to the statistic sources, just in case you want to take a deeper dive or update materials before a big meeting.
EBRI thanks the following companies for their support of the Retirement Security Research Center: Ameriprise Financial, BlackRock, Capital Group, Empower Retirement, J.P. Morgan Chase, Mercer, PGIM, Principal Financial Group, SS&C Technologies, and Transamerica Retirement Services.
If you want to add your company’s name to this list, please contact us today for more information.
Jan. 19, 2023 40 1(k) • • The per Becaus Plan e pe ce All nocatio toage of ple wit c n T h sm ivilia rends all balances n workers par are m ticipating ost lik in ely any to cash retireout, a diff ment plan w erent pict as 52 p ure erce emerg nt in es 2022, Average 401(k) Balance by Number of Plan Participants 6 while when ex 48 ami perning cent p this on articip an asset ated in a- DC weight plan ed bas . is: 38 percent of funds stayed in the plan, 48 401(k) Plan Characteristics by Number of Plan Participants, 2020 Workplace Retirement Plans: By the Number12 s percent were rolled over, and 14 percent got cashed out. Prov • ided b The n y umber EBRI o ’sf tax Retir paem yerent s parti Sec cipat uriitng y Resea in an ind rch Ce ividual nter retire ment account (IRA) in 2019 was Distribution of Plans, Participants, and Assets, 7 • The m 62.8 mill edian ion.age of the owners of IRAs receiving a rollover in 2017 was 48.0, meaning that by Type of Plan and Number of Participants, 2020 Number of Plan Participants Average Account Balance Average Asset Allocation of 401(k) Plan Accounts by Participant Age 13 many are rolling their assets over well ahead of retirement. 1 to 10 1 $111,135 Percentage of account balances, 2020 • 12.4 percent of all families owned an IRA and any type of DC plan in 2019, whereas 33.1 EBRI thanks the following companies for their support of the Retirement Security Research Center: Plan Count Participant Count (thousands) Assets (millions) 11 to 25 97,668 8 Ameri percen prise Fi t of f nancial amil , Bl ies ack with Rock a, ny type Capital Gro of DC plan also up, Empower Re had tireme an I nt RA , J..P . Morgan Chase, Mercer, PGIM, Single Employer Plans Single Employer 3, P l 4ans Single Employer Plans 26 to 50 89,652 Balanced funds GICs and Principal Financial Group, SS&C Technologies, and Transamerica Retirement Services. Labor Force Participation Trends Total DB DC Total DB DC Total DB DC Age Equity Target Date Non-Target Date Bond Money Other Stable Company Memo: 51 to 100 80,455 Total 739,381 45,032 694,349 119,844 19,814 100,029 $10,479,148 $2,691,972 $7,787,176 • The labor for 2, 3ce participation rates and the percentage of employed U 3.S. civilians decreased in 5 101 to 250 75,106 Group Funds Funds Balanced Funds Funds Funds Value Funds Stock Other Unknown Equities 14 None or Not Reported 29,685 3,612 26,073 — — — 7,750 5,760 1,990 2020 across all genders, ages, and races/ethnicities. 20s 33.5 50.2 5.5 4.9 0.3 1.7 0.9 1.3 1.4 84.3 251 to 500 74,893 2–9 253,437 22,346 231,091 1,290 104 1,187 208,625 28,105 180,520 30s 38.1 44.0 4.5 5.3 0.5 2.2 2.0 1.9 0.9 82.9 9 501 to 1,000 71,008 401(k) Account Balances Retirement Savings Plan (Defined Benefit Pension Plans, Defined Contribution Plans, and 40s • 45.Still, Bla 9 3 ck 2.4Americans2 sto .4 od out as b 7.1 eing par 0.ticul 7 arly hard 3.4 hit during 2 3.7 020: Black 2.4 American 1.0 76.7 10–24 184,727 8,661 176,066 2,883 129 2,754 260,417 14,485 245,933 1,001 to 2,500 75,820 Individual Retirement Accounts) Participation 50s 43.4 28.4 2.9 9.1 0.9 5.8 4.4 2.5 0.9 66.2 25–49 males and fem 107ales h ,056 ad the la 2,921 rgest 104,13 perc 5 3entage ,740 declin 100 e in3 the numb ,640 2er e 66,50m 3 ployed 8,from 486 2019 t 258o ,017 2,501 to 5,000 87,670 60s 37.8 28.2 3.7 11.2 1.3 8.4 3.6 2.8 1.0 56.2 15 • The average 401(k) balance at the end of 2020 was $87,040. The median was $17,961. 50–99 2020. 75,575 2,003 73,572 5,296 140 5,156 332,395 12,560 319,835 5,001 to 10,000 92,949 All 41.8 31.0 3.7 8.7 0.9 5.6 3.7 2.5 1.0 68.5 • 100–249 There were 142 46,6. 83 6 mill1 io ,6n total par 56 45,03ti 0cipants 7,16 in 5 private pe 272 nsio 6,89n p 3 lans 4 4( 1defi ,550ned benefit 31,842 and d 4efined 09,708 >10,000 95,369 • Female Hispanic Americans in 2020 had a similarly large percentage decline in their labor force 1 250–499 19,170 1,033 18,137 6,687 367 6,320 418,466 42,186 376,280 contribution) in 2020, representing $11.9 trillion, including 97.3 million who were active Percentages are dollar-weighted averagA esl.l 87,040 16 1 2 participation rate compared with that of female Black Americans. 500–999 10,349 844 9,505 7,191 600 6,591 481,174 82,753 398,422 participants. In 2022, 52 percent of private-industry workers participated in a retirement plan. 2 Note: The median account balance at year-end 2020 was $17,961. A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and passes 1 , 0 0 0 – 2 , 4 9 9 6,913 838 6,075 10,672 1,341 9,331 802,923 161,710 641,213 the target date of thS e o fuu nrd c,e w : hT ic ahb iu sl a utsio ua nls ly firn o cm lu dE ed B R inI /tI hC eI fu Pna dr’t si c nia pm an e.t-Directed Retirement Plan Data Collection Project • While the decline in the number of employed males in 2020 was slightly larger than that of 3 o There were 31.9 million defined benefit (DB) plan participants in 2020, including 12.01 2 , 5 0 0 – 4 , 9 9 9 2,700 476 2,223 9,431 1,685 7,746 836,238 209,402 626,836 Not all participants are offered this investment option (see Figure A7). 17 3 females 401(k , )t he Pl pe an rA ce cnc tag oue r nteductio Balann in the num ces Increas be er W employed ith Part w icias larger pant Ag for e a fe nd mal Te es. nur e 4 million private-sector workers who are active participants in a DB plan. 5 , 0 0 0 – 9 , 9 9 9 1,463 257 1,206 10,115 1,789 8,325 945,865 230,642 715,223 GICs are guaranteed investment contracts. Average 401(k) plan account balance by participant age and tenure, 2020 5 1 0 , 0 0 0 – 1 9 , 9 9 9 868 197 671 12,091 2,764 9,327 1,158,652 363,399 795,253 Equities include equity funds, company stock, and the equity portion of balanced funds. • Overall, the age/gender distribution of the labor force was nearly identical between 2019 and o Forty-eight percent of private industry workers participated in a defined contribution Note: Fund 2 s 0 i ,n 0 c 0 lu 0d –e 4 9m , 9u 9t 9 ual funds, 539 bank collec125 tive trusts, 414 life insura1 n6 c,e5 0 s7 eparat3 e, 8 a1 c6 counts1 , 2 a ,n 6d 9 1any po 1o ,7 le 7d 9 ,in 6v 3e 7stment5 p 2r6 o,d 7u 9c 2t prima 1r,i2 ly 5 2 in ,8 ve 4s 6ted in 4 2020. There were only two changes of more than 0.1 percentage points in this distribution: for Years of Tenure (DC) plan in 2022. There were 85.3 million private-sector workers who were active the security indicated. 50,000 or More 211 62 149 26,776 6,706 20,070 2,538,952 973,851 1,565,101 18 females ages 25–34 and males ages 35–44. Source: TabulationA s ge from G E rB ou RIp /ICI Participa 0n t to -Di2 re cted Re> ti2 re m to en 5t Plan D >a 5t at o Co 1ll0 ection> P 1r0 o je to ct 20 >20 to 30 >30 participants in a DC plan in 2020. This includes 72.2 million private-sector workers who 5 20s $5,667 $13,579 $21,865 were active participants in 401(k) plans. Percent Conversion • The age/gender distribu Avera tion of th ge 401(ose k) B empl alan oyed s ce byhowed mo Plan Ass re e tchanges s, 2020than the labor force, but 30s 13,690 26,386 49,311 $79,172 Plan Count Participant Count Assets the changes were still modest: Those ages 55 or older and females were most negatively 40s 24,986 42,967 76,091 140,203 $198,711 o Despite the large quantity of small (fewer than 100 employees) DC plans, which consist Single Employer Plans Singl e Employer Plans Single Employer Plans 19 impacted in 2020.Pl an Assets Average Account Balance 50s 38,620 58,776 94,806 162,966 279,626 $361,315 of 84 percent (584,864) of the total DC plan number, these small plans contain only 13 Total DB DC Total DB DC Total DB DC $0 to $250,000 $14,155 60s 59,771 67,945 95,323 140,512 225,259 351,174 percent (12.7 million) of the total par ticipants and 13 percent ($1.0 trillion) of the total Job Tenure and Defined Contribution Portability Total 100% 6% 94% 100% 17% 83% 100% 26% 74% >$250,000 to $625,000 29,722 assets. None or Not Reported 4 8 4 — — — 0 0 0 • The median tenure of wage and salary workers ages 20 and older was 4.8 years in 2022. When >$625,000 to $1,250,000 46,415 Note: The average account balance among all 11.5 million 401(k) plan participants was $87,040; 2–9 34 50 33 1 1 1 2 1 2 examining tenure by gender and age cohort among older wage and salary workers (ages 45– >$1,250,000 to $2,500,000 57,268 o On the contrary, large employers (more than 10,000 employees) comprise a smaller the median account balance was $17,961. Account balances are participant account balances 10–24 25 19 25 2 1 3 2 1 3 64), the oldest female wage and salary workers (ages 60–64) were the most likely to have 10 >$2,500,000 to $6,250,000 69,229 percentage of the total DC plan provider number (1,234 and less than 1 percent). But held in 401(k) plans at the participants’ current employers and are net of plan loans. Retirement 25–49 14 6 15 3 1 4 3 0 3 or more years of tenure in 2022, with 53.5 percent doing so. The youngest female wage and >$6,250,000 to $12,500,000 70,929 savingsmore than held in plan 42 s a tper precent vious (4 em 2.1 plomill yersion or ) roof lle d the ov eparti r intoc ipants a IRAs are nd not46 inc per ludecent d. Th ($ e t3 e. n6 u rbillio e n) of 50–99 10 4 11 4 1 5 3 0 4 salary workers (ages 45–49) were the least like ly to have 10 or more years of tenure, with only >$12,500,000 to $25,000,000 69,187 variableass is g ets ar enerae llyin y the earss w e large orking a DC plan t currents e . mployer and thus may overstate years of 100–249 6 4 6 6 101 7 4 1 5 36.1 percent having a job tenure of that length. >$25,000,000 to $62,500,000 71,384 participation in the 401(k) plan. 250–499 3 2 3 6 2 6 4 2 5 >$62,500,000 to $125,000,000 72,082 o Similarly, in the DB space, 80 percent (35,931) of the plans are small employer plans, Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project 500–999 1 2 1 6 3 7 5 3 5 >$125,000,000 to $250,000,000 70,398 which hold 4 percent (473,000) of participants and 2 percent ($63.6 trillion) of assets. 1 , 0 0 0 – 2 , 4 9 9 1 2 1 9 7 9 8 6 8 12 Point-of-Retirement Trends https://www.napa-net.org/sites/napa-net.org/files/Alight_distribution_in_DC_plans 2019.pdf >$250,000,000 109,263 Less than 1 percent (384) of the DB plans are large employer plans, which manage 13 2 , 5 0 0 – 4 , 9 9 9 0 1 0 8 9 8 8 8 8 EBRI IRA Database • In an examination of job terminations from 2008 to 2017, 22 percent of people ages 60 or older All 87,040 more than 67 percent (13.3 million) of participants and 69 percent ($1.9 trillion) of 14 5 , 0 0 0 – 9 , 9 9 9 0 1 0 8 9 8 9 9 9 https://www.ebri.org/publications/research-publications/issue-briefs/content/labor-force-participation-and-the- kept their entire balance in the plan, 34 percent rolled their money over to another vehicle, 31 Note: The median account balance at year-end 2020 was $17,961. assets. 1 0 , 0 0 0 – 1 9 , 9 9 9 0 0 0 10 14 9 11 13 10 pandemic-making-sense-of-the-changes 11 percent cashed out, and 14 percent had a combination of activities (e.g., partial distribution). Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project 15 https://www.ebri.org/publications/research-publications/issue-briefs/content/labor-force-participation-and-the- 2 0 , 0 0 0 – 4 9 , 9 9 9 0 0 0 14 19 13 17 20 16 pandemic-making-sense-of-the-changes 50,000 or More 0 0 0 22 34 20 24 36 20 1 16 https: https: // /www. /www. dol.g ebri.or ov/sit g/public es/dolg ations ov/f/researc iles/EBSA/resea h-publications rchers/i /stat ssue ist -briefs ics/re/c tirement ontent/-lab bulle or- tins/privat force-particip e-peat nsion ion-an -pla d-nt-he bu -lletins- Source: Private Pension Plan Bulletin, Abstract of 2020 Form 5500 Annual Reports, abstr pandemic act-2-020. making pdf- sense-of-the-changes https://www.dol.gov/sites/dolgov/files/EBSA/researchers/statistics/retirement-bulletins/private-pension-plan-bulletins-abstract-2020.pdf 2 17 https: https: // /www. /www. bl eb s.gov/ncs ri.org/public /ebsations /ben efi /researc ts/2022/ h-hom publi e.htm cations /issue-briefs/content/labor-force-participation-and-the- 3 6 pan https: https: demic / //www. /www. -making dol.g bls.gov/ncs -se ov nse /sit -of es/ /e -the b dolg s/b -ch en ov ang /f efi ilts es/E es /202 BSA/resea 2/home.htm rche rs/statistics/retirement-bulletins/private-pension-plan-bulletins- 7 18 abstr https: https: act/- / /www. 2 /www. 020.pd irs eb f.gov/st ri.org/public atistics ations /soi -tax /researc -stats-haccum -publications ulation- /iand ssue -d-ist briefs ribu/c tion ontent/ -of-inlab divid oru -fal orc -retir e-pement articipat -arrangem ion-and-tents he- 10 4 8 pan https: Em Cope dpl emic oy land //www. ee -m B , Cr ae king nef bl aig s.gov/ncs it -,s R “ eTr nse esear end -of /e s c- i h the b n In s /b Em -sch en titute pl ang efi oyts ee (EBRI) es /202 Tenure, 19 2/ e hom stimat e.htm 83 es –2022 of the ,” 201 EBRI 9 Iss Survey ue Bri of ef Cons , no. umer 578 (E Fimploye nances e Benefit Research 9 19 5 Inst https: Ho https: itute, Jan lden, // /www. /www. Sara uh, ary dol.g eb Steve 1 ri.or 9, ov 2023 /sit g/public n Bes/ as ).s dolg , and ations ov Craig /f/researc iles/E CBSA/resea opeland, h-publications “401 rche(rs k) //stat P iss lan ue ist -As briefs ics s/re et /c Allocat tirement ontent/ ion, Acc -lab bulle or- tins/privat ount Ba force-particip lances e-peat , and Loan Act nsion ion-an -pla d-nt-he bu -lletins ivity i- n 11 20 pan abstr https: 20 d,” emic act EBRI - /2 /www. -020. m I aking spd snap ue f- sBrie a e-nse net.or f, n -of o. -g/s the 576 ites/napa -ch , a ang nd es ICI - net Researc .org/files/Al h Pers ig pe ht_di ctive strib , vol. 28, no. ution_in_DC 11_p (N lans 2 ovember 019. pdf 202 2).