Fact Check: "About 70% of U.S. retirement assets are held in employer-sponsored plans."
What We Know
The claim that "about 70% of U.S. retirement assets are held in employer-sponsored plans" is a statistic often cited in discussions about retirement savings in the United States. According to the Investment Company Institute (ICI), as of 2021, employer-sponsored retirement plans, which include 401(k) plans, represent a significant portion of total retirement assets. The ICI reported that these plans accounted for approximately 60% of total U.S. retirement assets. However, the percentage can vary based on the definition of "retirement assets" and the inclusion of other types of accounts.
Additionally, the Federal Reserve provides data on household wealth, indicating that employer-sponsored plans are a major component of retirement savings, but they do not provide a specific percentage that aligns with the 70% claim.
Analysis
The claim of 70% appears to be an overestimate based on the available data. The ICI's report indicates that while employer-sponsored plans are crucial for retirement savings, they account for around 60% of total retirement assets. This figure suggests that the claim may stem from a misunderstanding or misrepresentation of the data.
Moreover, the Federal Reserve's data shows that retirement assets are also held in individual retirement accounts (IRAs), which are significant but not included in the employer-sponsored category. The combination of IRAs and employer-sponsored plans contributes to the overall retirement savings landscape, but the specific claim of 70% lacks direct support from credible sources.
The reliability of the ICI and Federal Reserve as sources is high, as both organizations are well-respected in the financial and economic sectors. However, the interpretation of their data must be approached with caution, particularly when it comes to claims that may not be explicitly stated in their reports.
Conclusion
Verdict: Unverified
The claim that "about 70% of U.S. retirement assets are held in employer-sponsored plans" is unverified due to a lack of supporting evidence from credible sources. While employer-sponsored plans do represent a significant portion of retirement assets, the more accurate figure is approximately 60%, according to the Investment Company Institute. Therefore, the claim appears to be an overestimate.
Sources
- Investment Company Institute. "The U.S. Retirement Market, 2021." ICI Report.
- Federal Reserve. "Distribution of Household Wealth in the U.S. 2019." Federal Reserve Report.
