Total Defined Contribution Pension Entitlements Held by the Bottom 50% (1st to 50th Wealth Percentiles)

WFRBLDCPB50 • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

605,910.00

Year-over-Year Change

11.95%

Date Range

7/1/1989 - 1/1/2025

Summary

This economic trend measures the total defined contribution pension entitlements held by the bottom 50% of U.S. households in terms of wealth. It provides insights into the retirement savings and financial security of lower-income Americans.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Defined contribution pension plans, such as 401(k)s, are a key component of retirement savings for many workers. This data series tracks the total value of these pension entitlements for the least wealthy half of U.S. households, offering a window into the retirement preparedness of lower-income Americans.

Methodology

The data is calculated by the Federal Reserve using survey information on household wealth and pension assets.

Historical Context

This trend is closely watched by policymakers and economists concerned with income inequality and retirement security.

Key Facts

  • Defined contribution plans account for over 50% of U.S. retirement assets.
  • The bottom 50% of households hold just 5% of total U.S. retirement savings.
  • Retirement readiness varies greatly by income and wealth level in the U.S.

FAQs

Q: What does this economic trend measure?

A: This trend measures the total value of defined contribution pension entitlements held by the least wealthy 50% of U.S. households.

Q: Why is this trend relevant for users or analysts?

A: This data offers insights into the retirement savings and financial security of lower-income Americans, an important issue for policymakers and economists.

Q: How is this data collected or calculated?

A: The Federal Reserve calculates this metric using survey data on household wealth and pension assets.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this data to assess retirement readiness and wealth inequality, which informs discussions around Social Security, tax incentives, and other retirement policies.

Q: Are there update delays or limitations?

A: The data is published quarterly with a lag, and may not fully capture all defined contribution pension assets held by lower-wealth households.

Related Trends

Citation

U.S. Federal Reserve, Total Defined Contribution Pension Entitlements Held by the Bottom 50% (1st to 50th Wealth Percentiles) (WFRBLDCPB50), retrieved from FRED.