U.S. Retirement Assets Back to Setting Record Highs in Q2: ICI
Solid stock market performance acting in concert with disciplined saving behavior and staying invested helped total U.S. retirement assets to a record high of $45.8 trillion as of June 30, 2025, up 6.0% from the end of Q1, the Investment Company Institute (ICI) reported today.
Despite early-quarter volatility and ongoing tariff concerns, the S&P 500 climbed nearly 11% in Q2 while the Nasdaq Composite jumped almost 18%. Combined with steady contributions, these market gains boosted retirement account balances between April 1 and June 30.
This after ICI reported that total U.S. retirement assets had declined by 1.6% in Q1 2025 compared to the end of 2024. Retirement assets accounted for 34% of all household financial assets in the United States at the end of June 2025.
Assets in Individual Retirement Accounts (IRAs) held the biggest share, totaling $18 trillion at the end of Q2—an increase of 7% from Q1.
Defined contribution plan assets were $13 trillion, which was up 6.4% from Q1.
Government defined benefit (DB) plans—including federal, state, and local government plans—held $9.3 trillion in assets as of the end of June 2025, a 4.9% increase from the end of March 2025.
Private-sector DB plans held $3.0 trillion in assets at the end of the second quarter of 2025, and annuity reserves outside of retirement accounts accounted for another $2.5 trillion.
Defined Contribution Plans
Of the $13 trillion Americans held in all employer-based DC retirement plans on June 30, 2025, $9.3 trillion was held in 401(k) plans, the ICI report found.
In addition to 401(k) plans, at the end of the second quarter, $780 billion was held in other private-sector DC plans, $1.5 trillion in 403(b) plans, $506 billion in 457 plans, and $1.0 trillion in the Federal Employees Retirement System’s Thrift Savings Plan (TSP).
Mutual funds managed $5.7 trillion, or 62% of assets held in 401(k) plans at the end of Q2. With $3.5 trillion, equity funds were the most common type of funds held in 401(k) plans, followed by $1.5 trillion in hybrid funds, which include target date funds.
IRAs
Of the $18.0 trillion in IRA assets, the ICI report found 39% ($6.9 trillion) was invested in mutual funds. With $4.0 trillion, equity funds were the most common type of funds held in IRAs, followed by $1.1 trillion in hybrid funds.
Retirement entitlements
As of June 30, 2025, total U.S. retirement entitlements were $49.9 trillion, including $45.8 trillion of financial assets, $185 billion in other assets, and another $3.9 trillion of unfunded liabilities. Retirement entitlements accounted for 37% of the financial assets of all U.S. households at the end of June.
Retirement entitlements include financial assets, other assets, and the unfunded liabilities of DB plans. Under a DB plan, employees accrue benefits to which they are legally entitled and which represent assets to U.S. households and liabilities to plans. To the extent that pension plan assets are insufficient to cover accrued benefit entitlements, a DB pension plan has a claim on the plan sponsor.
Unfunded liabilities are a larger issue for government DB plans than for private-sector DB plans. As of the end of Q2 2025, unfunded liabilities were 30% of benefit entitlements for state and local government DB plans, 26% of benefit entitlements for federal government DB plans, and 5% of benefit entitlements for private-sector DB plans.
The complete quarterly retirement data tables are available at “The US Retirement Market, Second Quarter 2025”.
SEE ALSO:
• Total U.S. Retirement Assets Down 1.6% in Q1 2025; IRAs Growing Faster than DC
• ICI Launches Company Fact Book
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
