Americans hold $20T in IRAs

The United States held $19.2 trillion in individual retirement accounts at the end of the fourth quarter of 2025, according to Investment Company Institute data. At the same time, Federal Reserve survey data show retirees who rely only on Social Security report weaker financial well-being than those with income from work, pensions or investments. The gap matters for people in their late 50s and early 60s because health coverage costs in the Affordable Care Act marketplace rose after enhanced premium tax credits expired at the end of 2025. KFF and AJMC reported that older adults are among the groups hit hardest because premiums rise with age and many are not yet eligible for Medicare. ### How large are IRA balances in the aggregate? Investment Company Institute said IRA assets totaled $19.2 trillion at the end of December 2025, up 1.7% from the prior quarter. That figure covers traditional IRAs, Roth IRAs and employer-sponsored IRA arrangements, and it makes IRAs one of the largest pools of U.S. retirement savings. Investopedia, citing those industry figures, reported that Americans collectively hold nearly $20 trillion in IRAs. (ici.org) The aggregate number, however, does not show how unevenly those assets are distributed across households or how much income they generate month to month for retirees. ### If the balances are so large, why do retirees still lean on Social Security? The Federal Reserve said in its 2024 report on the economic well-being of U.S. households that retirees with income from employment, pensions or investments were doing “substantially better” than those relying solely on Social Security or other public income. (ici.org) That finding points to a difference between having retirement assets on paper and drawing dependable cash flow in retirement. The Social Security Administration said the estimated average monthly retirement benefit for January 2026 was $2,071. SSA data also show 56.4 million retired workers and dependents were receiving benefits at the end of December 2025, underscoring how central the program remains to household income even as private retirement assets have grown. ### Why are health insurance costs part of this retirement story? (federalreserve.gov) The end of 2025 brought the expiration of the ACA’s enhanced premium subsidies after Congress did not extend them, AJMC reported in an April explainer. KFF estimated subsidized marketplace enrollees would see premium payments rise 114% on average in 2026, from $888 in 2025 to $1,904 in 2026, if the enhanced tax credits were not renewed. (ssa.gov) KFF said adults ages 50 to 64 are disproportionately exposed because they make up a large share of marketplace enrollees and face age-rated premiums. For a 60-year-old with income just above 400% of the federal poverty level, KFF estimated annual out-of-pocket premiums for a benchmark silver plan would rise from $7,320 in 2025 to $14,931 in 2026; for a 64-year-old at that income, the figure would rise from $8,652 to $16,500. (ajmc.com) ### Who is most exposed before Medicare begins? People ages 50 to 64 sit in the narrowest part of the system: too young for Medicare, often past peak earning years, and more likely to face higher individual-market premiums. KFF said enrollees just above 400% of poverty were expected to see the largest increases because the enhanced subsidies had removed the previous income cap. (kff.org) CMS said the average HealthCare.gov premium after tax credits for the lowest-cost plan in 2026 was projected at $50 a month for eligible enrollees, up from 2025. But that national average does not capture the steeper increases facing older middle-income consumers who lost the larger temporary subsidies. ### What does that mean for retirement timing? (kff.org) Federal Reserve survey findings show retirees with broader income sources fare better than those depending only on public benefits. For workers nearing retirement, that leaves a practical calculation: whether IRA withdrawals, current earnings and Social Security can cover housing, food and medical premiums before Medicare eligibility at age 65. (cms.gov) AJMC reported that higher premiums and out-of-pocket costs are already raising questions about affordability for people buying their own coverage. KFF’s estimates suggest the biggest pressure falls on older adults who are not poor enough to qualify for the largest remaining subsidies but are not yet old enough for Medicare. ### What concrete dates and data points come next? (federalreserve.gov) CMS reported on January 28, 2026, that 23.0 million consumers signed up for 2026 marketplace coverage during open enrollment. The next public markers are monthly Social Security benefit updates from SSA and future retirement-asset releases from the Investment Company Institute, which publishes quarterly retirement market data tracking IRA balances and flows. (cms.gov) (ajmc.com)