Total US retirement assets reached $45.8 trillion at the end of the second quarter of 2025, according to new data from the Investment Company Institute.
The figure marks a 6% increase from the previous quarter, reflecting continued growth in both individual and employer-sponsored retirement savings.
"Retirement assets accounted for 34 percent of all household financial assets in the United States at the end of June 2025," ICI said in a Thursday release announcing the new data.
Individual retirement accounts, or IRAs, comprised the largest share of retirement assets, totaling $18 trillion – up 7% from the end of March. Defined contribution plans, including 401(k)s and other employer-based programs, accounted for $13 trillion, a 6.4% increase over the previous quarter.
Government defined benefit plans, which include federal, state, and local government pensions, held $9.3 trillion, up 4.9%. Private-sector defined benefit plans added another $3 trillion, while annuity reserves outside retirement accounts made up $2.5 trillion.
Employer-based defined contribution plans remained a significant component of Americans’ retirement savings. Of the $13 trillion in DC plan assets, $9.3 trillion was held in 401(k) plans.
Other private-sector DC plans held $780 billion, 403(b) plans accounted for $1.5 trillion, 457 plans held $506 billion, and the Federal Employees Retirement System’s Thrift Savings Plan contained $1 trillion.
Mutual funds continued to play a central role in 401(k) plans, managing $5.7 trillion, or 62%, of 401(k) assets at the end of June. Equity funds were the most popular investment, representing $3.5 trillion, followed by $1.5 trillion in hybrid funds, which include target-date funds.
IRAs also saw a significant portion of assets invested in mutual funds. Thirty-nine percent of IRA assets, or $6.9 trillion, was allocated to mutual funds. Equity funds led the way with $4 trillion, while hybrid funds accounted for $1.1 trillion.
The ICI report also highlighted the broader context of retirement entitlements, which encompass not only financial assets but also other assets and the unfunded liabilities of defined benefit plans
Counting those obligations, total US retirement entitlements stood at $49.9 trillion as of June 30, including the aforementioned $45.8 trillion in financial assets, $185 billion in other assets, and $3.9 trillion in unfunded liabilities. All told, retirement entitlements made up 37% of all household financial assets at the end of the quarter.
Unfunded liabilities remain a challenge, particularly for government pension plans. According to the data, unfunded liabilities represented 30% of benefit entitlements for state and local government defined benefit plans, 26% for federal government plans, and 5% for private-sector defined benefit plans.
“Under a defined benefit plan, employees accrue benefits to which they are legally entitled and which represent assets to US households and liabilities to plans,” the ICI noted in its statement. "To the extent that pension plan assets are insufficient to cover accrued benefit entitlements, a DB pension plan has a claim on the plan sponsor."
A score is generated to show coverage needs across life insurance, long-term care coverage, retirement income protection, and annuities.
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