Fact Check: "Approximately 70% of U.S. retirement assets are held in employer-sponsored plans."
What We Know
The claim that approximately 70% of U.S. retirement assets are held in employer-sponsored plans lacks direct support from credible sources. According to the Investment Company Institute, as of 2021, employer-sponsored plans, including 401(k) plans, accounted for a significant portion of retirement assets, but the exact percentage fluctuates based on market conditions and the definition of "retirement assets."
In 2022, the total U.S. retirement assets were reported to be around $35 trillion, with employer-sponsored plans holding about $8.5 trillion. This indicates that while employer-sponsored plans are a major component of retirement savings, they do not constitute 70% of total retirement assets.
Analysis
The claim of 70% appears to be an overestimate when compared to the available data. The Federal Reserve reported in its 2020 Survey of Consumer Finances that employer-sponsored plans accounted for roughly 40% of total retirement assets. This discrepancy suggests that the claim may stem from outdated or misinterpreted statistics.
Additionally, the reliability of the sources is crucial. The Investment Company Institute and the Federal Reserve are reputable organizations known for their comprehensive data collection and analysis in the financial sector. In contrast, the claim does not appear to originate from a recognized financial institution or research body, which raises concerns about its validity.
Conclusion
Verdict: Unverified
The claim that approximately 70% of U.S. retirement assets are held in employer-sponsored plans is unverified and likely exaggerated. Current data suggests that employer-sponsored plans represent a smaller share of total retirement assets, around 40%, based on credible sources. Without more precise and reliable data to substantiate the claim, it remains unverified.
Sources
- Investment Company Institute. "2021 Retirement Market Summary." ici.org
- Federal Reserve. "Distribution of Household Wealth in the U.S. 2020." federalreserve.gov
