According to a new analysis from the Federal Reserve's Survey of Consumer Finances, Americans have increased their participation in retirement plans and seen their savings grow between 2022 and 2025 [1]. The report, released on Friday, shows that enrollment in retirement plans rose to 54.9% of families in 2025, marking a 0.6 percentage point increase since 2022 [1]. The conditional median value of retirement accounts climbed 11% to $106,000, while the conditional mean value surged 23% to $451,100 as of last year [1].
Retirement accounts, including individual retirement accounts and employer-sponsored plans such as 401(k), 403(b), and thrift savings accounts, remained the second-most commonly held financial asset among American households [1]. The survey revealed that retirement savings balances increased for nearly all age groups from 2022 to 2025. Specifically, the 55-64 age group saw average balances rise from $588,500 to $670,200, the 45-54 group from $342,700 to $415,800, and the 35-44 cohort from $154,800 to $182,400 [1]. However, the under 35 age group's average savings fell from $53,800 to $48,400, though this figure remains higher than averages recorded in 2016 and 2019 [1].
The Federal Reserve's analysis highlighted that defined contribution and IRA plans are much more prevalent than defined benefit plans, with enrollment rates rising from around 50% among the youngest families to about 65% for the oldest families in 2025 [1]. The biggest increase in participation over the last decade was seen in the youngest age group, which grew from 42% in 2016 to nearly 50% in 2025 [1]. Nearly all families owned at least one type of financial asset, with 98.9% of families in 2025 holding at least one such asset [1].
Despite the positive trend in retirement savings, direct ownership of stocks declined from 21% of families in 2022 to 19% in 2025, reversing a previous increase seen in the Fed's 2022 survey [1]. Transaction accounts remained the most commonly held financial asset, with an ownership rate of 98.7% in 2025 [1].
CONCLUSION
The Federal Reserve's latest survey indicates a steady increase in retirement plan participation and savings among American families, with notable gains across most age groups. While retirement accounts continue to be a key asset, direct stock ownership has declined. These trends suggest a shift toward diversified financial assets and growing confidence in retirement planning.