U.S. Retirement Assets in 2020
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INSIGHTi
U.S. Retirement Assets in 2020
May 6, 2021
The Federal Reserve’s Financial Accounts of the United States reported that the total amount of U.S.
retirement assets (outside of Social Security) was $37.0 trillion at the end of 2020.
Figure 1 shows the total amount of financial assets (in trillions of dollars) in pension plans sponsored by
private-sector employers, state and local governments, and the federal government. Figure 1 also shows
the amount of assets in Individual Retirement Accounts (IRAs).
Congressional Research Service
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IN11659
CRS INSIGHT
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Figure 1. Total Financial Assets in U.S. Pension Plans and IRAs
Pension plan data as of December 31, 2020; IRA data as of September 30, 2020
Source: Financial Accounts of the United States, https://www.federalreserve.gov/apps/fof/FOFTables.aspx.
Note: IRAs include employer-sponsored IRAs.
Many employers in both the private and public sectors offer one of two types of pension plans: defined
benefit (DB) plans or defined contribution (DC) plans. Some employers offer both types. Individuals can
also save for retirement outside of the workplace with an IRA.
In DB plans, participants usually receive monthly payments in retirement based on a formula that
typically uses either (1) a combination of length of service, accrual rate, and average of final years’ salary
or (2) a flat dollar amount times the number of months or years in the plan.
In DC plans, such as 401(k) plans, 403(b) plans, 457(b) plans, and the federal government’s Thrift
Savings Plan (TSP), workers and/or employers contribute a portion of their wages (up to an annual dollar
limit that is adjusted annually for increases in the cost of living) to individual accounts established by the
employers. When the employer’s contribution is equal to some or all of the worker’s contribution, it is
called a match. The account may accrue investment returns and can then be used as a source of income in
retirement.
An IRA is a privately held retirement savings account funded by individual contributions from wage
income and rollovers of DC account savings at job change or retirement. Most assets in IRAs are from
rollovers.
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Pension plans and IRAs receive preferential tax treatment. For example, employer contributions to DB
and DC plans are tax-deductible expenses, workers’ contributions to DC accounts are not included in
taxable income, and some contributions to IRAs are tax-deductible.
To provide additional context for the $37.0 trillion in (non-Social Security) retirement assets, the rest of
this Insight provides data on (1) household attachment to the retirement system, (2) breakdown between
active and nonactive participants in employer-sponsored pension plans, and (3) access and participation
rates for current workers in employer-sponsored pension plans.
About two-thirds of U.S. households have a financial stake in the U.S. retirement system (outside of
Social Security, which covers most households), through participation in one or more pension plans
and/or ownership of retirement assets. CRS analysis of the triennial Federal Reserve’s Survey of
Consumer Finances (SCF) found that among all U.S. households (which includes working and retired
households) in 2019,
63.3% had DC assets, participated in a DB plan, or had IRA assets,
37.5% had DC assets,
30.2% participated in a DB plan, and
25.4% had IRA assets.
Financial assets in pension plans are used to provide benefits for (1) current retirees and (2) future
retirees. In DC plans, active participants are eligible to contribute or have employer contributions made to
the plans. Other participants in DC plans are those no longer working for the employer that sponsors the
plan but who have assets in the plan.
In DB plans, active participants are working and earning benefits in the plans. Other participants in DB
plans are those separated from the plan and (1) receiving benefits (retired participants) or (2) with a right
to benefits in the future (separated, vested participants).
The percentage of active participants differs between DC and DB plans.
In private-sector DC plans, data from the Employee Benefits Security Administration
(EBSA) indicated that 78.6% of participants in 2018 were active participants. DC plan
participants tend to roll over their plan assets to IRAs when they leave the employer.
In the TSP, the Federal Retirement Thrift Investment Board reported that 70.0% of
participants on December 31, 2020, were active participants. Participant data for state and
local DC plans are not available.
In private-sector DB plans, EBSA data reported that 36.3% of participants in 2018 were
active participants.
In the federal government’s two DB plans that cover nearly all civilian federal employees
(the Civil Service Retirement System [CSRS] and the Federal Employees Retirement
System [FERS]), the Office of Personnel Management indicated that 50.4% of
participants were active participants at the beginning of FY2019.
In state and local government DB plans, data from the Public Plan Database at Boston
College’s Center for Retirement Research indicated that 48.7% of participants in FY2019
were active participants.
The Bureau of Labor Statistics (BLS) reported that 71% of U.S. private-sector and state and local
government workers (civilian workers) had access to, and 55% of all U.S. civilian workers participated in,
a pension plan at work in 2020. Table 1 shows the access and participation rates in retirement plans
among civilian U.S. workers (private-sector workers and state and local government workers). Nearly all
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federal employees (which are not included in Table 1) are enrolled in the DB and DC plans sponsored by
the federal government.
Table 1. Access and Participation Rates in Employer-Sponsored Pension Plans, March 2020
Either Defined Benefit or
Defined Contribution Plan
Defined Benefit
Defined Contribution
Access
Participation
Access
Participation
Access
Participation
Civilian
71%
55%
25%
20%
60%
43%
Employeesa
Private-Sector
67%
51%
15%
11%
64%
47%
Employeesb
State and Local
91%
83%
86%
76%
37%
18%
Government
Employeesc
Source: March 2020 National Compensation Survey (NCS), https://www.bls.gov/ncs/ebs/benefits/2020/employee-benefits-
in-the-united-states-march-2020.pdf.
Notes: Definitions are from the NCS’s Glossary of Employee Benefit Terms, available at http://www.bls.gov/ncs/ebs/
glossary20152016.htm, and BLS Information Glossary, at http://www.bls.gov/bls/glossary.htm#C.
a. Defined by BLS as all private industry and state and local government workers, excluding federal government, military,
and agricultural workers.
b. Referred to in the NCS as private industry workers, excluding agricultural workers and private households.
c. Referred to in the NCS as public sector workers, excluding federal workers.
Author Information
John J. Topoleski
Elizabeth A. Myers
Specialist in Income Security
Analyst in Income Security
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
IN11659 · VERSION 1 · NEW
INSIGHTi
U.S. Retirement Assets in 2020
May 6, 2021
The Federal Reserve’s Financial Accounts of the United States reported that the total amount of U.S.
retirement assets (outside of Social Security) was $37.0 trillion at the end of 2020.
Figure 1 shows the total amount of financial assets (in trillions of dollars) in pension plans sponsored by
private-sector employers, state and local governments, and the federal government. Figure 1 also shows
the amount of assets in Individual Retirement Accounts (IRAs).
Congressional Research Service
https://crsreports.congress.gov
IN11659
CRS INSIGHT
Prepared for Members and
Committees of Congress
Congressional Research Service
2
Figure 1. Total Financial Assets in U.S. Pension Plans and IRAs
Pension plan data as of December 31, 2020; IRA data as of September 30, 2020
Source: Financial Accounts of the United States, https://www.federalreserve.gov/apps/fof/FOFTables.aspx.
Note: IRAs include employer-sponsored IRAs.
Many employers in both the private and public sectors offer one of two types of pension plans: defined
benefit (DB) plans or defined contribution (DC) plans. Some employers offer both types. Individuals can
also save for retirement outside of the workplace with an IRA.
In DB plans, participants usually receive monthly payments in retirement based on a formula that
typically uses either (1) a combination of length of service, accrual rate, and average of final years’ salary
or (2) a flat dollar amount times the number of months or years in the plan.
In DC plans, such as 401(k) plans, 403(b) plans, 457(b) plans, and the federal government’s Thrift
Savings Plan (TSP), workers and/or employers contribute a portion of their wages (up to an annual dollar
limit that is adjusted annually for increases in the cost of living) to individual accounts established by the
employers. When the employer’s contribution is equal to some or all of the worker’s contribution, it is
called a match. The account may accrue investment returns and can then be used as a source of income in
retirement.
An IRA is a privately held retirement savings account funded by individual contributions from wage
income and rollovers of DC account savings at job change or retirement. Most assets in IRAs are from
rollovers.
link to page 4 Congressional Research Service
3
Pension plans and IRAs receive preferential tax treatment. For example, employer contributions to DB
and DC plans are tax-deductible expenses, workers’ contributions to DC accounts are not included in
taxable income, and some contributions to IRAs are tax-deductible.
To provide additional context for the $37.0 trillion in (non-Social Security) retirement assets, the rest of
this Insight provides data on (1) household attachment to the retirement system, (2) breakdown between
active and nonactive participants in employer-sponsored pension plans, and (3) access and participation
rates for current workers in employer-sponsored pension plans.
About two-thirds of U.S. households have a financial stake in the U.S. retirement system (outside of
Social Security, which covers most households), through participation in one or more pension plans
and/or ownership of retirement assets. CRS analysis of the triennial Federal Reserve’s Survey of
Consumer Finances (SCF) found that among all U.S. households (which includes working and retired
households) in 2019,
63.3% had DC assets, participated in a DB plan, or had IRA assets,
37.5% had DC assets,
30.2% participated in a DB plan, and
25.4% had IRA assets.
Financial assets in pension plans are used to provide benefits for (1) current retirees and (2) future
retirees. In DC plans, active participants are eligible to contribute or have employer contributions made to
the plans. Other participants in DC plans are those no longer working for the employer that sponsors the
plan but who have assets in the plan.
In DB plans, active participants are working and earning benefits in the plans. Other participants in DB
plans are those separated from the plan and (1) receiving benefits (retired participants) or (2) with a right
to benefits in the future (separated, vested participants).
The percentage of active participants differs between DC and DB plans.
In private-sector DC plans, data from the Employee Benefits Security Administration
(EBSA) indicated that 78.6% of participants in 2018 were active participants. DC plan
participants tend to roll over their plan assets to IRAs when they leave the employer.
In the TSP, the Federal Retirement Thrift Investment Board reported that 70.0% of
participants on December 31, 2020, were active participants. Participant data for state and
local DC plans are not available.
In private-sector DB plans, EBSA data reported that 36.3% of participants in 2018 were
active participants.
In the federal government’s two DB plans that cover nearly all civilian federal employees
(the Civil Service Retirement System [CSRS] and the Federal Employees Retirement
System [FERS]), the Office of Personnel Management indicated that 50.4% of
participants were active participants at the beginning of FY2019.
In state and local government DB plans, data from the Public Plan Database at Boston
College’s Center for Retirement Research indicated that 48.7% of participants in FY2019
were active participants.
The Bureau of Labor Statistics (BLS) reported that 71% of U.S. private-sector and state and local
government workers (civilian workers) had access to, and 55% of all U.S. civilian workers participated in,
a pension plan at work in 2020. Table 1 shows the access and participation rates in retirement plans
among civilian U.S. workers (private-sector workers and state and local government workers). Nearly all
link to page 4 Congressional Research Service
4
federal employees (which are not included in Table 1) are enrolled in the DB and DC plans sponsored by
the federal government.
Table 1. Access and Participation Rates in Employer-Sponsored Pension Plans, March 2020
Either Defined Benefit or
Defined Contribution Plan
Defined Benefit
Defined Contribution
Access
Participation
Access
Participation
Access
Participation
Civilian
71%
55%
25%
20%
60%
43%
Employeesa
Private-Sector
67%
51%
15%
11%
64%
47%
Employeesb
State and Local
91%
83%
86%
76%
37%
18%
Government
Employeesc
Source: March 2020 National Compensation Survey (NCS), https://www.bls.gov/ncs/ebs/benefits/2020/employee-benefits-
in-the-united-states-march-2020.pdf.
Notes: Definitions are from the NCS’s Glossary of Employee Benefit Terms, available at http://www.bls.gov/ncs/ebs/
glossary20152016.htm, and BLS Information Glossary, at http://www.bls.gov/bls/glossary.htm#C.
a. Defined by BLS as all private industry and state and local government workers, excluding federal government, military,
and agricultural workers.
b. Referred to in the NCS as private industry workers, excluding agricultural workers and private households.
c. Referred to in the NCS as public sector workers, excluding federal workers.
Author Information
John J. Topoleski
Elizabeth A. Myers
Specialist in Income Security
Analyst in Income Security
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
IN11659 · VERSION 1 · NEW