New FuturePlan Cash Balance Outlook and Trends Report Sees Cash Balance Plans Surge 1025% Over Two Decades, Surpassing $1 Trillion in Assets and 9.5M Savers
Small businesses—now accounting for 56% of cash balance plans—and companies in California and New York lead the charge.
FuturePlan by Ascensus released the 13th edition of its highly anticipated Cash Balance Outlook and Trends Report, revealing that cash balance plans have grown by 11 times over the past two decades—an increase of more than 1,025 percent. This growth underscores their strategic value and widespread appeal among small business owners and retirement professionals.
Key Findings from the 2025 Report:
- Defined Benefit Industry Authority: Over 55% of all defined benefit plans are now structured as cash balance plans, highlighting their rise as a preferred, tax-efficient strategy for accelerating retirement savings.
- Cash Balance Plans Outpace 401(k) Growth: From 2003 to 2022, cash balance plans grew nearly eight times faster than 401(k) plans, reflecting a shift in retirement strategy preferences.
- A Trillion-Dollar Market: Nationwide, cash balance plan assets have surpassed $1 trillion, benefiting more than 9.5 million retirement savers.
- Small Businesses Lead the Charge: Businesses with nine or fewer employees now account for over 56% of all cash balance plans, leveraging them as a powerful tool to catch up on retirement savings and remain competitive in the talent market.
- Geographic Concentration: California and New York together represent nearly 30% of all cash balance plans, followed closely by Florida and Texas, illustrating strong regional adoption.
- Medical Groups Dominate Adoption: Specialty medical groups, particularly radiologists and anesthesiologists, continue to be the leading adopters, representing over 35% of all cash balance plans.
FuturePlan’s Cash Balance Center of Excellence serves as a leading expert in cash balance plan design and administration for over 35 years.
“The extraordinary growth of cash balance plans over the past two decades reflects a fundamental shift in how small business owners and retirement professionals approach long-term financial planning,” said Dan Kravitz, National Practice Leader for Cash Balance Plans at FuturePlan. “Surpassing the trillion-dollar mark and now representing over half of all defined benefit plans, cash balance plans have proven to be a powerful, tax-efficient solution for accelerating retirement savings.”
This year’s report draws on 2024 and 2025 data from FuturePlan’s book of business, 2023 IRS Form 5500 filings via the BrightScope database, and 2022 data from the U.S. Department of Labor. It includes comparative analysis between 2020 and 2023 (most recent full data set) to provide a comprehensive view of evolving trends.
To learn more about the report findings, visit https://futureplan.com/plans/cash-balance-plans/outlook-and-trends-report.
About FuturePlan by Ascensus
FuturePlan is a leading national retirement TPA dedicated to helping advisors, recordkeepers, and plan sponsors deliver better outcomes for savers. Its highly responsive, personalized service is backed by the strength and security of a national leader in Ascensus. As of June 30, 2025, FuturePlan's experienced team of experts supports more than 41,000 retirement plans with more than 1.4 million participants and more than $111 billion in assets under administration. For more information, visit futureplan.com.
FuturePlan’s leadership team brings decades of expertise to serve clients and partners. Ascensus began building FuturePlan in 2010, uniting more than 30 exceptional retirement TPA firms from across the nation to transform the industry. The depth of experience, diverse strengths, and specialized expertise of our legacy TPA firms make FuturePlan an industry leader.
About Ascensus
Ascensus is a market-leading enabler of tax-advantaged savings—providing technology, services, and expertise that help nearly 16 million people save for a better future.
The company is a premier savings program service provider, third-party administrator, and government savings facilitator. Its platforms, industry knowledge, and data-based insights enhance the growth and success of its partners, their clients, and savers through co-branded, private-labeled, and governmental partnerships.
Ascensus offers comprehensive qualified and nonqualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, corporate- and bank-owned life insurance solutions, and fiduciary and total rewards services.
The company’s brands include Ascensus; Newport, an Ascensus company; and FuturePlan by Ascensus. Ascensus has more than $892 billion in assets under administration and employs more than 5,000 associates as of June 30, 2025.
For more information, visit ascensus.com and newportgroup.com.