Private Sector Workers See Boost in Retirement Plan Accessibility
The latest report from the Bureau of Labor Statistics (BLS) highlights a strong surge in retirement plan benefit accessibility among private sector workers.
According to the findings, 72% of private industry workers had access to retirement benefits in March 2025, 70% could participate in defined contribution (DC) plans, and 14% were able to utilize defined benefit (DB) plans.
Access to retirement benefits increased as company size grew, the BLS reported. Fifty-nine percent of workers in plans with less than 100 employees could access retirement tools and features, while 86% of workers in companies with 100 to 499 employees and 90% of those in workforces with over 500 employees could obtain retirement benefits.
Meanwhile, 6% of workers in companies with less than 100 employees, 13% employed at organizations with 100-499 workers, and 36% of in establishments with over 500 workers had access to DB plans.
Nearly all full-time state and local government workers had access to retirement benefits, the BLS found. Ninety-nine percent of full-time workers could access retirement features while 88% participated in the plan. Part-time workers were less likely to access or participate in these benefits, with 44% having access and 38% participating.
The findings suggest a push among retirement plan benefits, as more workers press plan sponsors for the features and as employers oblige to attract and retain employees.
If passed, new legislation could also increase the number of employees who have access to retirement plan benefits. A bill introduced by Rep. Brittany Pettersen (D-CO) in July would expand accessibility to employer-sponsored retirement plans for workers between the ages of 18 to 20 years old. A Senate version of the bill was also presented by Sens. Bill Cassidy (R-LA) and Tim Kaine (D-VA) in May.
Currently, the Employee Retirement Income Security Act (ERISA) mandates that employers who provide 401(k) plans only offer them to employees ages 21 or older. While companies can offer a 401(k) plan to employees under 21 years old, many do not due to high costs and excessive red tape, Pettersen said.
BLS’ findings were recorded by the National Compensation Survey (NCS), conducted by the Department of Labor (DOL) and the BLS.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
