401k Plan Statistics and Trends For 2025

This article compiles recent 401k data from major industry surveys, academic studies, and U.S. government sources such as the BLS, DOL, IRS, ICI, Vanguard, and PSCA. The figures reflect information available through late 2024 and early 2025.

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401k Participation and Coverage Statistics

Retirement plan access has grown steadily across the private sector, but coverage and participation still vary based on company size, plan type, and worker demographics. The figures below highlight how access to 401k and other retirement plans looks as of early 2025.

✅ Access to Retirement Benefits – As of March 2025, 72% of private-industry workers had access to retirement benefits. About 70% had access to defined contribution (DC) plans such as 401k plans, and 14% had access to traditional defined benefit (DB) pensions. (BLS)

✅ Access vs. Participation Gap – In 2023, 70% of private-industry workers could join a retirement plan, but only 53% actually participated. (BLS)

✅ Growth in Defined Contribution Plans – Between 2010 and 2023, DC plan access increased from 59% to 67%, while DB plan access declined from 20% to 15%. (BLS)

✅ Coverage by Employer Size – As of 2025, 59% of employees at firms with fewer than 100 workers had access to a retirement plan. The rate rose to 86% for firms with 100–499 workers and 90% for those with 500 or more. (BLS, quoted by Primary News Source)

✅ Industries Maintaining Pensions – In 2024, 15% of all private-industry workers had access to DB pensions. In financial services, 31% had access, and 16% were active participants. (BLS)

✅ Union vs. Nonunion Coverage – In 2023, 63% of union workers in private industry had access to DC plans and 66% to DB plans. Among nonunion workers, 68% had access to DC plans but only 10% to DB plans. (BLS)

✅ Scope of the 401k System – In 2022, there were roughly 685,000 401k plans nationwide covering about 80.8 million participants. (ICI)

✅ Active Participation Levels – By the end of 2023, around 70 million workers were active participants in 401k plans, holding about $7.4 trillion in assets. (ICI)

✅ Plan Participation Rates – Vanguard’s 2023 data shows an 85% plan-weighted participation rate and 82% on a participant-weighted basis. Automatic-enrollment plans reached 94%, compared with 67% for voluntary ones. (Vanguard)

✅ Employee Engagement – According to PSCA’s 67th Annual Survey, 88% of eligible employees had a 401k account balance and 86.9% were actively contributing during the 2023 plan year. (PSCA)

✅ Defined Contribution Plans Dominate – DC plans now cover about half of all private-sector workers, confirming their role as the primary retirement vehicle for most employees. (Vanguard)

✅ Workers Feeling Behind – A 2023 national survey found that 56% of workers believe they are behind on retirement savings, including 37% who feel significantly behind. Only 21% feel on track and 16% feel ahead. (Bankrate)

401k Balance and Contribution Statistics

401k balances vary widely across workers, and the averages often mask large differences by age, income, and years of participation. The data below highlights current trends in savings behavior and contribution levels as of 2024–2025.

✅ Average vs. Median Balances – Among nearly 5 million Vanguard participants, the average 401k balance at year-end 2023 was $134,128, while the median was $35,286. This gap reflects how a small number of large accounts significantly drive up the average. (Vanguard)

✅ Typical Employee Deferral Rates – In 2023, the average employee deferral rate was 7.4% of pay, with a median of 6.2%, showing that most workers contribute a meaningful portion of their income toward retirement. (Vanguard)

✅ Combined Contribution Levels – When employer contributions are included, Vanguard participants saved an average total of 11.7% of pay in 2023, with a median of 11.0%. (Vanguard)

✅ PSCA Reported Savings Rates – The Plan Sponsor Council of America found similar results for 2023: employees contributed 7.8% of pay, employers added 4.9%, for a combined 12.7% savings rate. (PSCA)

✅ Impact of Automatic Enrollment – Plans with automatic enrollment reached an average combined savings rate of 12.3% of pay, compared with 7.4% for voluntary-enrollment plans. (Vanguard)

✅ Investment Allocation Trends – At the end of 2023, about 65% of 401k plan assets were invested in mutual funds. Roughly 97% of participants held some equities, and 68% used target-date funds for diversified, age-based investing. (ICI)

✅ Typical Investment Menu Size – The average 401k plan offered around 28 investment options, covering a range of U.S. and international stock funds, bond funds, and target-date options. (ICI)

✅ Risk Patterns by Age – In 2022, participants in their 20s held about 90% of their 401k assets in equities and 66% in target-date funds. Participants in their 60s held about 57% in equities and 32% in target-date funds, reflecting increasingly conservative allocations near retirement. (ICI)

✅ Generational Balance Differences – As of 2025, millennials held an average of about $67,300 in 401k savings, compared with $192,300 for Gen X and $249,300 for baby boomers. Older generations have typically had more years to save and invest. (Investopedia)

✅ Age Gaps Within Millennials – Younger millennials (ages 25–34) averaged roughly $42,640, while older millennials (ages 35–44) averaged about $103,552 in 401k savings. (Investopedia)

✅ Defined Contribution Share of Total Retirement Wealth – In early 2024, U.S. retirement assets totaled nearly $40 trillion, with defined contribution plans, mainly 401k and 403(b) plans, representing about $11.1 trillion. (Planadviser)

✅ IRAs vs. 401k Assets – At year-end 2023, IRA assets totaled $13.6 trillion (about 35% of total retirement market assets), while 401k plans held $7.4 trillion (about 19%). (ICI)

401k Features & Fees Stats

Modern 401k plans continue to evolve toward automatic participation, diversified investment options, and lower costs. The following data highlights how plan design and fees have shifted as of 2023–2024.

✅ Automatic Enrollment Adoption – By the end of 2023, 59% of Vanguard-administered plans had automatic enrollment in place. Among large plans with 1,000 or more participants, the rate reached 77%, showing that auto features are now standard for many employers. (Vanguard)

✅ Automatic Escalation of Contributions – Roughly two-thirds of Vanguard auto-enrollment plans also included an automatic escalation feature that gradually increases employee deferral rates over time. (Vanguard)

✅ Higher Default Contribution Rates – In 2023, 60% of Vanguard auto-enrollment plans started new participants at 4% of pay or higher, up from 39% in 2014. This trend helps employees reach stronger savings levels earlier in their careers. (Vanguard)

✅ Shorter Waiting Periods – Nearly 75% of Vanguard plans allowed employees to begin making voluntary 401k contributions immediately upon hire in 2023, compared with 65% in 2014. (Vanguard)

✅ Roth 401k Availability – By the end of 2023, 82% of Vanguard plans offered a Roth feature, including 95% of large plans. About 17% of participants in those plans used Roth contributions. (Vanguard)

✅ Roth Options in Broader Surveys – The PSCA found that 93% of all 401k plans allowed Roth after-tax contributions in 2023, confirming that Roth access is now common in most employer plans. (PSCA)

✅ Roth Usage Among Participants – Despite widespread availability, only 21% of eligible participants made Roth contributions during the 2023 plan year. (PSCA)

✅ Target-Date Fund Popularity – Target-date funds remain the leading investment default. In 2023, 96% of Vanguard plans offered them, and 83% of participants used them. About 70% of target-date investors held their entire account in a single target-date fund. (Vanguard)

✅ Managed Account Services – Managed accounts have become a standard plan feature. In 2023, 43% of Vanguard DC plans offered managed-account advice services, including eight in ten large plans. The PSCA reported a similar figure, with 50.1% of all plans offering managed accounts. (Vanguard, PSCA)

✅ Declining Total Plan Costs – Among large 401k plans reviewed by BrightScope and ICI for 2022, the plan-weighted average total cost was 0.85% of assets, the participant-weighted average was 0.52%, and the asset-weighted average was 0.33%. Costs have continued to trend downward as plan sizes and assets grow. (ICI)

✅ Lower Mutual Fund Expense Ratios – Mutual fund fees within 401k plans remain relatively low, especially for index funds. In 2022, average asset-weighted expense ratios were:

Index mutual funds had an average expense ratio of only 0.06%, emphasizing how low-cost investing has become the norm for many 401k participants. (ICI)

Employer Contributions and 401k Match Statistics

Employer contributions remain one of the biggest advantages of participating in a 401k plan. Most workers with access to a plan receive some level of company match or contribution, and these benefits continue to expand across employers.

✅ Widespread Employer Contributions – About 90% of 401k participants are in plans that include some type of employer contribution, making company-funded savings a core feature of modern plans. (ICI)

✅ Variety of Contribution Types – According to Vanguard’s 2023 data:

✅ Typical Employer Match Levels – The average employer match in Vanguard-administered plans equaled 4.6% of pay, with a median of 4.0%. (Vanguard)

✅ Non-Matching Contributions – Among plans that included a non-matching contribution, the average employer deposit was equivalent to 5.4% of pay, with a median of 4.4%. (Vanguard)

✅ Company Contributions Increasing Gradually – In 2023, company contributions averaged 4.9% of pay, up from 4.7% the previous year, helping many workers reach total savings rates in the 12–15% of pay range when combined with employee deferrals. (PSCA)

✅ Student-Loan Match Still Emerging – Although the SECURE 2.0 Act allows matching contributions on student-loan repayments, only about 2% of plans have adopted this feature so far. (PSCA)

401k Withdrawals, Loans, and “Leakage” Statistics

Access to 401k funds before retirement can provide flexibility, but it also risks reducing long-term savings. These data points show how often participants borrow or withdraw from their accounts and how most assets still remain in the system.

✅ Loan Access vs. Borrowing Rates – About 84% of 401k participants can take a loan from their plan, yet only 13% had a loan outstanding at the end of 2022. For those who borrowed, loans averaged around 10% of their remaining balance, and total loans made up less than 1% of all 401k assets. (ICI)

✅ Loan Usage Slightly Declining – In 2023, 17.5% of participants had a loan outstanding, down from 18.6% the previous year. Only 0.9% of total plan assets were loaned out, showing limited borrowing overall. (PSCA)

✅ Average Loan Balances – Vanguard data show that 13% of participants carried a loan in 2023, with an average balance of roughly $10,700. (Vanguard)

✅ Hardship Withdrawals Increasing Gradually – About 3.6% of participants took a hardship withdrawal in 2023, up from 2.8% in 2022. Although still a small share, the rise indicates slightly greater use of emergency access. (Vanguard)

✅ Adoption of SECURE 2.0 Withdrawal Flexibility – Among plans surveyed in 2023:

✅ Most Assets Stay in the Retirement System – In 2023, about one-quarter of participants had left their employer and could take a distribution. Of that group, 82% kept their savings in a tax-advantaged account, either in-plan or through a rollover. This preserves 97% of assets available for distribution. (Vanguard)

✅ Non-Contributors Still a Concern – Despite broad plan access, 22% of U.S. workers did not make any retirement contributions in 2022 or 2023. (Bankrate)

✅ Retirement Confidence Remains Low – A 2024 national study found that many workers doubt they can save enough for retirement, reflecting growing concern about reduced pension coverage and uneven access to employer plans. (NIRS)

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