Answering President Trump’s Call to Strengthen the US Retirement System
Washington, DC; February 25, 2026—In the State of the Union address last night, the president called to expand retirement savings opportunities for American workers. The Investment Company Institute issued the following statement in response, welcoming the focus on strengthening the nation’s retirement system and expressing its commitment to working with the administration and Congress to expand access and choice by building on the proven strengths of the employer-based framework:
“The US voluntary retirement system is strong and access continues to expand. ICI looks forward to working with the administration to build on that strength—expanding access for all Americans and increasing choice within the proven employer-based system that serves tens of millions of workers well, with easily accessible IRAs available to self-employed workers. Preserving and strengthening that framework is the most effective way to help more Americans save for a secure retirement, rather than shifting to a government-run one-size-fits-all approach.”
Key facts:
- 70% of all US households, or 94.4 million households, own a defined contribution plan account like a 401(k) or own an Individual Retirement Account (IRA).
- As of 2024, 44% of US households, or 58 million, owned IRAs.
- This is up from 34% a decade prior.
- As of September 2025, 401(k) plans served 70 million active participants, as well as millions of retirees.
- 401(k) and IRA assets were more than $32 trillion as of Q3 2025.
- Private retirement plans build on Social Security to offer Americans high income replacement in retirement.
- Research from ICI economists found that the typical retiree maintains more than 90% of their average age 55–59 inflation-adjusted spendable income.
- At age 72, lower-income Americans typically have replacement rates above 100%, so their spendable income goes up in retirement.
- IRAs’ portability and choice make them a popular investment option for those who do not have access to a workplace plan.
- A recent ICI survey on gig workers, for example, found that 71% of gig workers reported their household has retirement assets, compared with 74% of non-gig workers.