Pension Statistics in US 2026 | Who Has One, Amounts & Key Retirement Facts

Retirement security has never been more top-of-mind for American workers, and yet the gap between those who have meaningful pension coverage and those who do not has never been wider. In 2026, the United States retirement landscape sits at a critical crossroads: public pension assets have surpassed $6.85 trillion, the largest funded ratio for the nation’s 100 biggest plans in years is being projected, and yet nearly half of all private-sector workers still lack access to any employer-sponsored retirement plan at their job. The traditional defined benefit pension — a guaranteed monthly check for life — has been quietly replaced in most of the private sector by defined contribution plans like the 401(k), shifting investment risk from employer to employee and creating massive disparities in retirement outcomes based on income, race, and gender.

This article pulls together the most current and verified US pension statistics for 2026, covering who actually has a pension, what those pensions pay, how public and private plans compare, the state of 401(k) savings balances by age, the racial and gender gaps baked into the system, and the health of America’s massive public pension infrastructure. Whether you are a worker planning your retirement, a policy researcher, or simply trying to understand what the data really shows about retirement security in America today, every figure here is sourced directly from federal government datasets, congressional research, the Federal Reserve, the Census Bureau, the Bureau of Labor Statistics, and leading actuarial firms.

Interesting Facts: US Pension Statistics 2026

FAST FACTS — US PENSION SYSTEM 2026
═══════════════════════════════════════════════════════════════════════
  Public pension total assets (Q4 2025):   $6.85 trillion (Federal Reserve)
  Public pension participants (2025):       37+ million (Census Bureau)
  Funded ratio of top 100 public plans:    ~84.7% projected (Milliman, Nov 2025)
  Unfunded public pension liabilities:     ~$1.48 trillion (Reason Foundation, 2025)
  Private-sector DB plan access:           Only 14% of workers (BLS, March 2025)
  All civilian worker plan participation:  56% (BLS / Pension Rights Center, 2025)
  State & local govt workers with DB:      86% have access
  Social Security avg monthly benefit:     $2,071/month (Jan 2026, SSA)
  Avg retirement savings balance:          $547,840 (Empower, March 2026)
  Avg 401(k) balance, all ages:            $340,364 (Empower, Jan 2026)
  "Magic number" to retire comfortably:    $1.46 million (Northwestern Mutual, 2026)
  Annual 401(k) contribution limit 2026:   $24,500 (IRS / Pension Rights Center)
═══════════════════════════════════════════════════════════════════════

Source: U.S. Census Bureau ASPP (May 2026), Federal Reserve Z.1 (FRED, updated March 2026), Milliman PPFS (Feb 2026), Reason Foundation Pension Solvency Report (2025), BLS NCS (March 2025), SSA (Jan 2026), Pension Rights Center (March 2026), Empower (Jan/March 2026), Northwestern Mutual (2026)

The headline figure that defines the US pension landscape in 2026 is the simultaneous existence of extraordinary scale and profound inequality. On the public side, $6.85 trillion in state and local pension assets represents one of the largest pools of retirement wealth on earth — growing by over 11.1% year-over-year — supporting 37 million plan participants. Projections from Milliman place the funded ratio of the nation’s 100 largest public plans at 84.7%, their strongest position since late 2021 and a meaningful recovery from the 75.1% recorded at recent measurement dates. The annual investment return for 2025 is estimated at 9.5%, well above the assumed rate of 6.87%, driving this improvement. Yet even with these gains, $1.48 trillion in unfunded liabilities remains — a structural debt that taxpayers will ultimately carry.

On the private side, the contrast is stark. Just 14% of private-sector workers** have access to a traditional defined benefit pension, compared to 86% of state and local government workers. The average American worker’s actual retirement savings of $340,364 in a 401(k) — even the higher $547,840 figure from broader retirement account data — falls far short of the $1.46 million that Americans themselves say they would need to retire comfortably. The 2.8% Social Security COLA in 2026 brings the average monthly benefit to just $2,071 — roughly $24,852 per year — which the Pension Rights Center notes replaces only about 35% of pre-retirement pay, making employer pensions and personal savings absolutely essential to avoiding poverty in retirement.

Who Has a Pension in the US 2026 | Coverage Rates by Sector & Employer Size

RETIREMENT PLAN ACCESS RATES — US 2026 (BLS, March 2025 NCS)
═══════════════════════════════════════════════════════════════════════
  State & local govt workers (DB access)  ████████████████████████████  86%
  Full-time civilian workers (any plan)   ████████████████████████████  82%
  Private sector (any retirement benefit) ████████████████████████████  72%
  Private sector (DC plan access)         ███████████████████████████░  70%
  Large firms (500+ employees, any plan)  ████████████████████████████  90%
  Mid-size firms (100-499 employees)      ████████████████████████████  86%
  Small firms (<50 employees)             ████████████████░░░░░░░░░░░░  55%
  Private sector (DB plan access)         ██████░░░░░░░░░░░░░░░░░░░░░░  14%
  All civilian workers (participating)    ████████████████████░░░░░░░░  56%
═══════════════════════════════════════════════════════════════════════

Source: Bureau of Labor Statistics, National Compensation Survey (NCS): Employee Benefits in the United States, March 2025 (released September 2025); Congressional Research Service (CRS) Worker Participation in Employer-Sponsored Pensions in 2025 (March 2026)

The single most defining structural fact about pension coverage in the United States in 2026 is the chasm between public and private sector access. While 86% of state and local government workers have access to a defined benefit pension, only 14% of private-sector workers can say the same. This gap has widened steadily over three decades as corporations replaced guaranteed pensions with 401(k) defined contribution plans, effectively transferring investment risk from employer to employee. The Bureau of Labor Statistics’ March 2025 National Compensation Survey confirms the current state of play: 70% of private-sector workers have DC plan access, but just 14% have access to a traditional DB pension. The 6% of small-firm workers (under 100 employees) with DB access is particularly striking — it means that the vast majority of America’s small business workforce is entirely dependent on employee-funded savings and Social Security.

Employer size remains one of the strongest predictors of retirement security in the US. Workers at firms with 500 or more employees enjoy 90% access to any retirement plan, with 36% having DB plan access — dramatically above the national private-sector average. Meanwhile, workers at firms with fewer than 50 employees — a category encompassing tens of millions of Americans — see only 55% total plan access and a mere 6% DB access rate. As of January 31, 2026, a growing policy response has emerged: 12 states have enacted auto-IRA programs, accumulating 1.2 million funded accounts with $2.9 billion in total assets, per the CRS. These programs attempt to close the small-business coverage gap, but the assets involved remain modest relative to the scale of the problem.

Average Pension & Retirement Benefit Amounts in the US 2026 | What Retirees Actually Receive

AVERAGE & MEDIAN RETIREMENT INCOME — KEY BENCHMARKS US 2026
═══════════════════════════════════════════════════════════════════════
  Social Security avg monthly benefit:   $2,071/mo  ($24,852/yr)
  SS maximum at full retirement age:     $4,018/mo
  Avg retirement income (65+, median):   $58,680/yr
  Avg retirement income (65+, mean):     $89,120/yr
  Median private pension benefit/yr:     ~$10,606/yr per beneficiary
  Avg Social Security (retiree, 2024):   $23,704/yr (Pension Rights Center)
  Couple SS (both receiving, 2024):      $38,209/yr
  Annual expenses — adults 65+ (avg):   ~$62,000/yr
  401(k) avg contribution limit 2026:    $24,500/yr (employee only)
═══════════════════════════════════════════════════════════════════════

Source: SSA FAQ (Jan 2026), Pension Rights Center (March 2026), Randall Wealth Group / annuity.org (2026), NASRA (March 2026), IRS / Pension Rights Center contribution limits 2026

The gap between what retirement income Americans receive and what they actually need is one of the defining financial challenges of 2026. The average retiree’s median income of $58,680 per year appears adequate on the surface — until set against average annual expenses of approximately $62,000 for Americans over 65, which means that the typical American retiree is running a deficit from day one. That shortfall is compounded when you remove the highest earners from the picture: the $30,000+ difference between the median and mean ($58,680 vs $89,120) confirms that a relatively small number of wealthy retirees pull the average up sharply, masking the reality that a large proportion of American retirees live on significantly less than $58,680.

The Social Security picture makes this clearer still. The $2,071 average monthly Social Security benefit in 2026 — boosted by a 2.8% COLA increase — replaces only about 35% of the average worker’s pre-retirement earnings, according to the Pension Rights Center. For the roughly one in three older Americans who also receive pension income, this gap is partially bridged. For the two in three who do not, Social Security becomes the primary income source, supplemented only by whatever personal savings and investment income they have accumulated. The median private pension benefit of approximately $10,606 per year — while meaningful — is also modest in isolation, reinforcing why the Pension Rights Center emphasises that pensions should be understood as supplements to Social Security rather than standalone income sources for most recipients.

401(k) Retirement Savings Balances by Age in the US 2026 | What Americans Have Saved

AVERAGE RETIREMENT SAVINGS BALANCE BY AGE — US 2026 (Empower, March 2026)
═══════════════════════════════════════════════════════════════════════
  Americans in their 60s:   Avg $1,228,196  |  Median $568,116
  Americans in their 50s:   Avg $1,050,481  |  Median $460,363
  Americans in their 40s:   Avg (substantial growth phase)
  Americans in their 30s:   Avg (early to mid accumulation)
  Americans in their 20s:   Avg (early stage — still building)
  All age groups combined:  Avg $547,840   |  Avg 401(k): $340,364
  Under age 35 (401k only): Avg ~$42,000   |  Median ~$16,000
═══════════════════════════════════════════════════════════════════════

Source: Empower Personal Dashboard™ (anonymised data, January 2026 and March 2026), Vanguard How America Saves 2025, Fidelity Q4 2025 data, Northwestern Mutual 2026 Planning & Progress Study

The retirement savings data by age in 2026 tells a story of widening divergence. For those in their 60s, the average combined retirement balance of $1,228,196 looks reassuring — until the median of $568,116 reveals that most 60-somethings have roughly half of what the average suggests. The median is a more honest figure: it represents the exact middle of all savers, unaffected by the high-balance accounts that pull averages upward. Even the median of $568,116 for those in their 60s, when converted to lifetime income at typical annuity rates, produces roughly $2,000 to $2,500 per month — meaningful, but not sufficient to fund a 25-to-30-year retirement without Social Security and other sources. The median 401(k) balance of just $16,000 for workers under 35 is a reminder of how early the deficit begins.

The total 401(k) savings rate of 14.2% (employee plus employer combined) holding steady for a third consecutive quarter through Q4 2025 is one of the more encouraging signals in the data. Fidelity Investments reports this as a record-high participation trend, with 45% of workers increasing contributions from 2023 to 2024 per Vanguard’s How America Saves 2025 report. But participation rates and contribution rates among those already saving obscure the large share of workers not participating at all. Vanguard also reports an average employee contribution rate of 7.7% of pay in 2024 — a figure that applies only to active contributors. For a worker earning $60,000, contributing 7.7% with a typical employer match still generates far less than the IRS’s $24,500 annual limit, meaning most Americans will enter retirement with balances considerably below the averages cited above.

Public Pension Health in the US 2026 | Assets, Liabilities & Funded Ratios

US PUBLIC PENSION FINANCIAL HEALTH — KEY 2025/2026 INDICATORS
═══════════════════════════════════════════════════════════════════════
  Total assets (Q4 2025, Federal Reserve):     $6.85 trillion
  YoY asset growth (Q4 2024 → Q4 2025):       +11.1% (+$684 billion)
  Top 100 plans — projected funded ratio:      84.7% (Milliman, Nov 2025)
  National median funded ratio (end 2024):     78.0%
  Projected national avg funded ratio (2025):  82.5% (Equable Institute)
  Total unfunded liabilities (2024):           ~$1.48 trillion
  State pension unfunded liabilities:          $1.29 trillion
  Local govt pension unfunded liabilities:     $187 billion
  Est. 2025 average investment return:         9.5% (above 6.87% assumed)
  Annual pension payments to beneficiaries:    $400+ billion/year
═══════════════════════════════════════════════════════════════════════

Source: Federal Reserve FRED (BOGZ1FL222000075A, updated March 2026), U.S. Census Bureau ASPP press release (May 14, 2026), Milliman PPFS (Feb 2026), Reason Foundation Pension Solvency Report (Oct 2025), Equable Institute State of Pensions 2025 (Jan 2026), NASRA (March 2026)

The financial condition of US public pensions in 2026 is the strongest it has been in several years, yet the system remains structurally underfunded in ways that carry long-term risk. The $6.85 trillion in total state and local pension assets confirmed by the Federal Reserve for Q4 2025 represents an $684 billion increase year-over-year — a 11.1% gain driven primarily by strong equity market performance through 2025. Milliman’s independent analysis projects the funded ratio of the 100 largest plans at 84.7% as of November 2025 — the highest reading since December 2021’s 85.5% high-water mark. The Equable Institute projects the national average funded ratio will reach 82.5% by end of 2025, with unfunded liabilities declining from $1.5 trillion to $1.2 trillion thanks to the estimated 9.5% average investment return, well above the 6.87% assumed rate.

The critical caveat is that these gains are fragile and the underlying liability structure remains enormous. $1.48 trillion in total unfunded liabilities persists even after improvements — and Reason Foundation has previously warned that a single economic recession could push this figure toward $2.74 trillion. The April 2025 tariff-triggered market shock demonstrated this vulnerability in real time: as Equable Institute noted, “pension funds aren’t resilient as much as they have been fortunate.” On the positive side, public pension benefits are paid from dedicated trust funds, not general operating budgets — a structural protection that NASRA’s March 2026 brief emphasises. Employer contributions represent just 5.16% of direct general spending by state and local governments, meaning that even at current levels, pension obligations do not crowd out public services the way critics sometimes suggest.

Pension Coverage Gaps by Race & Gender in the US 2026 | Equity & Inequality Data

RETIREMENT SAVINGS INEQUALITY — US 2026 (RACE & GENDER)
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  White families avg retirement savings advantage vs. Black families:
  1989: ~$50,000 gap  →  2022: ~$260,000 gap (5x increase in 30 years)

  Women median retirement savings (2022):     $44,000
  Men median retirement savings (2022):       $91,000
  Gender gap in retirement savings:           ~$47,000 (107% more for men)

  Retirees WITH pension — living above 200% FPL:    91%
  Retirees WITHOUT pension — living above 200% FPL: 60%
  Gap: Having a pension = 31 percentage points better poverty protection

  Black pensioners vs. white pensioners:
  Public pension income = virtually equal per-recipient amounts
═══════════════════════════════════════════════════════════════════════

Source: NIRS & UC Berkeley Labor Center “Closing the Gap” (2023, widely cited in 2026 policy context); Urban Institute Wealth Inequality Charts (updated 2025/2026); Transamerica Center for Retirement Studies; Bureau of Labor Statistics; Inequality.org (updated March 2026)

The racial and gender dimensions of pension inequality in the United States represent some of the most consequential — and most underreported — aspects of the entire retirement crisis. The $260,000 gap in average retirement savings between white and Black families in 2022, up from $50,000 in 1989, is not merely a statistic: it reflects three decades of compounding inequality in wages, job access, employer plan availability, and investment opportunity. The research from the National Institute on Retirement Security (NIRS) and the UC Berkeley Labor Center demonstrates clearly that public defined benefit pensions are the single most effective tool for closing this gap — because public pension income is “distributed relatively evenly among recipients by race,” and public pension income is distributed more equally by gender than private pension or 401(k) income. For Black and Latino retirees, having a pension is literally the difference between staying above the poverty line and falling below it.

The gender retirement gap cuts across all racial groups but is especially severe in absolute terms. Women’s $44,000 median retirement savings versus men’s $91,000 as of 2022 — a gap of more than 100% — is a direct consequence of the gender wage gap: both pension calculations and Social Security benefits are tied to lifetime earnings, meaning that every dollar women earn less during their working lives translates into a smaller benefit for decades of retirement. Women also live longer on average, meaning their lower savings must stretch further. The $4,584 annual Social Security benefit gap between women and men may appear modest, but over a 20-year retirement it compounds to roughly $90,000 in cumulative income lost. Policy discussions about expanding public pension access — including through the 12 state auto-IRA programs now operating — are partly a direct response to these documented inequities, though the $2.9 billion in total auto-IRA assets as of January 2026 represents only a small fraction of what would be needed to meaningfully close the gap.

Disclaimer: This research report is compiled from publicly available sources. While reasonable efforts have been made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information. We accept no liability for any errors, omissions, losses, or damages of any kind arising from the use of this report.

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