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Retirement savers had a record $45.8 trillion in the second quarter

The total rose by 6% from the previous quarter

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • Total U.S. retirement assets climbed to $45.8 trillion in Q2 2025, a 6% increase from March.
  • IRAs grew the fastest, rising 7% to reach $18.0 trillion.
  • Retirement entitlements, including unfunded liabilities, stood at $49.9 trillion, or 37% of household financial assets.

Total U.S. retirement assets hit $45.8 trillion at the end of June 2025, marking a 6% jump from the previous quarter, according to new data from the Investment Company Institute (ICI). Retirement holdings now make up 34% of all household financial assets.

The strongest growth came from individual retirement accounts (IRAs), which rose 7% from March to $18.0 trillion. Of these assets, nearly 40% ($6.9 trillion) are invested in mutual funds. 

Equity funds remain the dominant choice, with $4.0 trillion, followed by $1.1 trillion in hybrid funds such as target-date products.

Defined contribution (DC) plans also saw robust gains, increasing 6.4% to reach $13.0 trillion. The bulk of these savings, $9.3 trillion, sits in 401(k) plans. Other employer-based plans include $780 billion in private-sector DC plans, $1.5 trillion in 403(b) accounts, $506 billion in 457 plans, and $1.0 trillion in the federal Thrift Savings Plan.

Mutual funds continue to play a leading role in DC retirement portfolios, managing 62% of 401(k) assets. Equity funds accounted for $3.5 trillion, while hybrid funds made up another $1.5 trillion.

Meanwhile, defined benefit (DB) plans, both public and private, also grew, though at a slower pace. Government DB plans rose 4.9% to $9.3 trillion, while private-sector DB plans held steady at $3.0 trillion. Annuity reserves outside of retirement accounts contributed an additional $2.5 trillion.

Retirement entitlements and liabilities

When factoring in all retirement entitlements, including assets, other holdings, and unfunded liabilities, the total reached $49.9 trillion by the end of June. That figure represented 37% of all household financial assets in the United States.

However, the data highlight ongoing challenges around unfunded pension obligations. Government plans, in particular, face steep funding gaps: 30% of state and local government DB plan entitlements and 26% of federal DB plan entitlements remain unfunded. By contrast, private-sector DB plans carry only a 5% shortfall.

The sharp increase in retirement assets reflects strong financial markets and steady contributions, but it also highlights the dependency of millions of Americans on these savings vehicles for long-term stability. The growing gap in government plan funding may also emerge as a key fiscal concern for policymakers.