More Employers Than Ever Are Contributing to Workers' 401(k) Plans

New research from ICI and ISS MI shows the big impact employers have on 401(k) plans

Mar. 12, 2026 at 10:51pm

Got story updates? Submit your updates here. ›

New research from the Investment Company Institute (ICI) and ISS Market Intelligence (ISS MI) finds that more than 90% of large 401(k) plans, generally defined as those with 100 participants or more, offer employer contributions. Large plans also offer 29 investment options on average, and the measure of total plan costs has fallen significantly in the past decade, benefiting American retirement savers.

Why it matters

401(k) plans are crucial for private-sector workers' retirement security, with about 70 million active participants and millions of retirees benefiting. Employer contributions, diverse investment options, and falling plan fees are empowering workers to save for retirement.

The details

Employer and employee contributions to large 401(k) plans totaled $181 billion in 2023, with 35% coming from employer contributions. More than half of 401(k) plans with over $50 million in assets had automatic enrollment in 2023, and over 60% of plans with over $1 billion in assets did. Overall, 43% of large 401(k) plans reported automatic enrollment. Total plan cost has decreased from 1.02% in 2009 to 0.74% in 2023 on a plan-weighted basis, from 0.65% to 0.48% on a participant-weighted basis, and from 0.47% to 0.30% on an asset-weighted basis.

  • The ICI/ISS MI Defined Contribution Plan Profile: A Close Look at 401(k) Plans, 2023 analyzed data from 2023.
  • The report found that total plan cost has decreased since 2009.

The players

Investment Company Institute (ICI)

The leading association representing the asset management industry in service of individual investors, with members managing $44.7 trillion invested in funds registered under the US Investment Company Act of 1940.

ISS Market Intelligence (ISS MI)

A leading provider of data, insights, and market engagement solutions to the global financial services industry, empowering asset and wealth management firms, insurance companies, distributors, service providers, and technology firms.

Shelly Antoniewicz

ICI Chief Economist.

Brooks Herman

Managing Director, ISS MI.

Got photos? Submit your photos here. ›

What they’re saying

“American companies are empowering their workers to save for retirement with employer contributions, diverse investment options, and falling plan fees. 401(k) plans are crucial for private-sector workers' retirement security, with about 70 million active participants and millions of retirees benefiting.”

— Shelly Antoniewicz, ICI Chief Economist

“The measure of total plan costs has fallen significantly in the decade-plus that we've been tracking it using MarketPro Retirement powered by Brightscope. Participants are saving money on plan costs and investment options. This is good news for American retirement savers.”

— Brooks Herman, Managing Director, ISS MI

The takeaway

Employer contributions, automatic enrollment, and falling plan fees are making 401(k) plans more accessible and beneficial for American workers, empowering them to save for a secure retirement.