The Fact
In March 2025, 14% of private-industry workers had access to a defined-benefit retirement plan, while 70% had access to a defined-contribution plan. Defined-benefit plans promise a formula-based benefit; defined-contribution plans build individual account balances.
What This Means
For most private-sector workers today, an employer-sponsored retirement plan means an individual investment account rather than the traditional pension that was much more common when Gen X was young.
Sources
- U.S. Bureau of Labor Statistics, Employee Benefits in the United States — March 2025, National Compensation Survey.