How many American workers participate in workplace retirement plans? - Pension Rights Center (2024)

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How many American workers participate in workplace retirement plans? - Pension Rights Center? ›

Typically in any year only half of workers participate in a retirement plan at work. In 2023 participation by all civilian workers, full and part-time, was 56 percent.

Just 54% of Americans had a retirement account as of 2022, according to the SCF, which is published every three years.

In March 2023, 73 percent of civilian workers had access to retirement benefits, with 56 percent of workers participating in these plans. The take-up rate (the percent of workers with access to an employer-sponsored benefit who choose to participate in the benefit) for retirement benefits was 77 percent in March.

Sixty-five percent of eligible workers participate in 401(k) plans. Employee participation rises with income, age, job tenure, and education. While participation also rises if the employer matches contributions, 401(k) participation does not grow with the rate of matching.

Just 11% of would-be retirees surveyed by CNBC say they don't plan to work in any capacity after they retire. More than a third of respondents — 36% — say they're not sure, while the majority, 53%, anticipate working, either because they'll want to or to supplement their income.

The median retirement savings for American households is $87,000. Median retirement savings for Americans younger than 35 is $18,800. 67% of Americans have a retirement account but only 34% feel on track for retirement.

Only 15% of private industry workers have access to a pension, also known as a defined benefit plan, according to Bureau of Labor Statistics data. This coincides with a trend of more employers shifting to defined contribution retirement plans such as 401(k)s.

Today, the rate is 2.07 and by 2050 it is expected to trend downward to 1.95. The result has been dramatic. In 1940, there were 42 workers per retiree. Today the ratio is 3-to-1; by 2050 it will be 2-to-1.

15 percent of private industry workers had access to a defined benefit retirement plan. In March 2023, 15 percent of private industry workers had access to a defined benefit plan.

How many people have $1,000,000 in retirement savings? ›

According to estimates based on the Federal Reserve Survey of Consumer Finances, only 3.2% of retirees have over $1 million in their retirement accounts. This percentage drops even further when considering those with $5 million or more, accounting for a mere 0.1% of retirees.

Do You? 20% of adults ages 50+ have no retirement savings, 61% worry they won't have enough at retirement, as per new AARP survey. Plus six tips to start saving now.

About 69 million workers, or 56% of the nation's workforce, lack access to a retirement plan through their workplace, the Economic Innovation Group found in its analysis of 2021 Census data.

Nearly 57 million people — 48% of American private sector employees ages 18 to 64 — work for an employer that does not offer either a traditional pension or a retirement savings plan. “Having access to a retirement plan at work is critical for building financial security later in life.

Median Pension Benefit

The median private pension benefit of individuals age 65 and older was $11,040 a year. The median state or local government pension benefit was $24,980 a year.

Over 70% of all U.S. workers have access to employer-sponsored pensions, and 56% of U.S. workers participate in employer-sponsored pensions.

In 2022, about 46% of households reported any savings in retirement accounts. Twenty-six percent had saved more than $100,000, and 9% had more than $500,000. These percentages were only somewhat higher for older people. Those ages 50 to 54 were the most likely to have a retirement account.

20 percent of adults ages 50 and over have no retirement savings at all. 61 percent are worried they will not have enough money to support themselves in retirement. Perhaps most startling, only 40 percent of men who are regularly saving for retirement believe they are saving enough. For women the number is 30 percent.

As of June, there were roughly 497,000 so-called retirement-created millionaires in the U.S., according to the wealth management firm, which analyzed balances across 26,000 of its customers' accounts. Nearly 399,000 Americans also have a least $1 million in an individual retirement account.

Empower data shows that the majority of Americans contribute to a retirement plan (70%), though contributions vary by generation: Only 47% of Gen Zers say they save in a retirement plan, such as a 401(k) or 403 (b), compared to 75% of Millennials and 76% of Gen Xers.