15 percent of private industry workers had access to a defined benefit retirement plan

In March 2023, 15 percent of private industry workers had access to a defined benefit plan. Defined benefit plans provide employees with guaranteed retirement benefits based on plan formulas. An employee's retirement age, length of service, and preretirement earnings may affect the benefits received. Among private industries, financial activities stood out as 33 percent of workers had access to a defined benefit plan and 19 percent of workers chose to participate.

Defined contribution plans determine the value of individual accounts based on the amount of money contributed and the rate of return on the money invested. This type of plan was more widely available to private industry workers as 67 percent of workers had access and 49 percent chose to participate in March 2023. Eighty-seven percent of workers in financial activities had access to a defined contribution plan and 76 percent chose to participate.

These data are from the Employee Benefits program. For more information, see “Employee Benefits in the United States — March 2023.” Information on retirement plan benefits and costs are highlighted in the recent Spotlight on Statistics, “1974–2024: Celebrating 50 Years of Protected Retirement Plans.”