Retirement Savings on the Rise Among Americans
Recently, the Federal Reserve released findings indicating that Americans have increasingly engaged in retirement plans, reflecting significant growth in their savings over recent years.
According to the Federal Reserve’s Survey of Consumer Finances report, which covered the period from 2022 to 2025, families participating in retirement plans reached 54.9% by 2025, marking a modest rise of 0.6 percentage points from 2022.
The median value of retirement accounts increased by 11% during this time, now standing at $106,000. Meanwhile, the average value saw a more substantial jump of 23%, reaching $451,100 as of last year.
Retirement accounts continue to rank as the second most widely held financial asset among U.S. households. This category includes individual retirement accounts along with employer-sponsored plans such as 401(k) and 403(b) accounts.
From 2022 to 2025, almost all age groups reported growth in their retirement savings balances, with notable increases. For instance, individuals aged 55-64 saw their average balances rise from $588,500 to $670,200. Similarly, the 45-54 age group saw their savings grow from $342,700 to $415,800.
For those aged 35-44, average retirement balances increased from $154,800 to $182,400. However, the under-35 category experienced a decline, with their average savings dropping from $53,800 to $48,400, although this figure remains higher than the averages recorded in 2016 and 2019.
The analysis from the Federal Reserve highlighted a notable trend wherein defined contribution plans, including individual retirement accounts (IRAs), are vastly outnumbering defined benefit plans. Enrollment surged from approximately 50% among younger families to around 65% for older families by 2025.
Interestingly, the youngest age group showed the most significant growth in participation, jumping from 42% in 2016 to nearly 50% in 2025. Overall, nearly all families held at least one type of financial asset, with 98.9% of families in 2025 owning at least one transaction account, retirement account, or other managed investments.
Despite these positive trends in retirement savings, there was a slight decline in direct stock ownership, decreasing from 21% of families in 2022 to 19% in 2025. However, this figure was still considerably higher than the 15.2% rate reported in 2019. Moreover, conditional median stock holdings experienced a rebound, rising from $16,400 to $30,000, nearly offsetting the previous drop in median stock holdings over the two years prior.
