Introduction
Retirement security is top of mind for millions of Americans, especially as the Social Security Administration (SSA) projects future funding challenges and changing benefit levels. According to the Federal Reserve and EBRI (Employee Benefit Research Institute), total U.S. retirement assets have surpassed $40 trillion in 2025, yet the average household remains underprepared for retirement. In this report, we break down the latest data on retirement savings, Social Security benefits, and projected trends—sourced from government and industry research.
Key Takeaways
- Total U.S. retirement assets reached $40+ trillion in 2025, reflecting steady growth amid market fluctuations.
- The average 401(k) balance stands at $110,000, a 6% increase from 2024.
- Median IRA balances hover around $35,000, indicating a large gap in savings across income levels.
- The average monthly Social Security retirement benefit is approximately $1,900 in 2025, up 3% from the previous year due to cost-of-living adjustments (COLA).
- Social Security’s trust fund is projected to face shortfalls by 2034–2035, prompting ongoing policy debates.
- 40% of Americans report having $0 saved for retirement.
- 25% of Americans report having less than $10,000 saved for retirement.
Total Retirement Savings in 2025
Growth & Trends
Recent data from the Federal Reserve shows that retirement assets—encompassing 401(k)s, IRAs, and pension plans—have grown steadily to exceed $40 trillion in 2025. This growth is influenced by continued stock market performance, increased employer contributions, and higher individual participation rates in defined-contribution plans.
- Why It Matters: An expanding total retirement fund suggests that more Americans are investing in retirement accounts. However, averages can be misleading, as many low- and middle-income workers have minimal or no retirement savings.
401(k) Balances & Participation
Average & Median Balances
According to EBRI and Fidelity Investments data, the average 401(k) balance is about $110,000 in 2025—a 6% rise from 2024. However, the median balance is substantially lower, around $35,000, indicating a wide disparity in savings levels.
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- Why It Matters: A high average but low median balance suggests a concentration of wealth in higher-earning individuals’ accounts. Many workers remain at risk of insufficient retirement income.
Participation Rates
Participation in 401(k) plans remains strong, with around 68% of eligible employees contributing. Automatic enrollment features have been credited with boosting participation, although contribution rates vary significantly by age and income bracket.
IRA Accounts: Balances & Contributions
Individual Retirement Accounts (IRAs)
IRAs play a crucial role for those without employer-sponsored plans or seeking supplemental retirement savings. Median IRA balances in 2025 stand at $35,000, reflecting modest growth compared to the previous year.
- Why It Matters: Many Americans use IRAs to rollover 401(k) balances from previous employers. Ongoing policy discussions about increasing IRA contribution limits could influence future median balances.
Social Security in 2025
Average Benefit & Cost of Living Adjustments (COLA)
The Social Security Administration (SSA) reports that the average monthly retirement benefit in 2025 is approximately $1,900, buoyed by a 3% COLA increase.
- Why It Matters: For many retirees, Social Security represents a primary source of income, highlighting the importance of benefit adequacy amid rising living costs.
Solvency & Trust Fund Projections
SSA Trustees forecast that the Old-Age and Survivors Insurance (OASI) Trust Fund may face depletion by 2034–2035 unless reforms are implemented—such as modifying payroll tax rates, adjusting the retirement age, or recalculating benefits.
- Why It Matters: An aging population and lower birth rates compound funding challenges, sparking legislative debates on how best to secure Social Security for future generations.
Retirement Readiness & Income Gaps
Household Preparedness
Despite growing balances among certain demographics, nearly 50% of U.S. households risk retirement shortfalls, per EBRI estimates. Individuals in lower income brackets often lack access to employer-sponsored plans and struggle to save consistently.
- Why It Matters: Policymakers and financial advisors stress the importance of expanding retirement plan accessibility to close the savings gap and reduce future reliance on Social Security alone.
Gender & Racial Disparities
Data from the Employee Benefit Research Institute also highlights disparities: women and minority groups often have lower average balances and are more dependent on Social Security.
- Why It Matters: Addressing disparities in pay and retirement plan participation can help improve overall retirement security and reduce long-term inequality.
Sources & Citations
| Source | Statistic | Year | Link |
|---|---|---|---|
| Federal Reserve | Total U.S. retirement assets: $40+ trillion | 2025 | Source |
| EBRI (Employee Benefit Research Institute) | Median 401(k) balance: $35,000 | 2025 | Source |
| Fidelity Investments | Average 401(k) balance: $110,000 | 2025 | Source |
| Social Security Administration (SSA) | Average monthly retirement benefit: $1,900 | 2025 | Source |
| Social Security Administration (SSA) | OASI Trust Fund Depletion Projected 2034–2035 | 2025 | Source |
