Cash Balance Plans Top $1T, per Ascensus

FuturePlan by Ascensus, a national third-party administrator, released the 13th edition of its “Cash Balance Outlook and Trends Report,” revealing that cash balance plans have increased by more than 1,025% over the past 20 years. This 11-fold growth highlights the rising strategic importance of these plans for small business owners and retirement professionals seeking tax-efficient ways to build wealth.

A cash balance plan is an IRS-qualified retirement plan known as a hybrid plan. It combines the high contribution limits of a defined benefit plan with the flexibility and portability of a defined contribution plan. For many business owners, these plans offer a solution to reduce tax liabilities while accelerating retirement savings.

The survey data show that more than half of all defined benefit plans are now structured as cash balance plans, signaling a long-term shift in retirement strategy preferences. According to Dan Kravitz, FuturePlan’s national practice leader for cash balance plans, it marks a significant change in financial planning.

“Cash balance plans have proven to be a powerful, tax-efficient solution for accelerating retirement savings,” Kravitz said in a statement.

Market Drivers, Demographics

From 2003 to 2022, cash balance plans expanded nearly eight times faster than 401(k) plans. With total assets now exceeding $1 trillion, cash balance plans serve more than 9.5 million retirement savers nationwide.

Small businesses have played a key role in this growth. According to the report, companies with fewer than 10 employees now account for more than 56% of all cash balance plans. These employers are increasingly leveraging the plans to boost retirement contributions and enhance their competitiveness in the talent market.

Regionally, adoption has been strongest in California and New York, which together account for nearly 30% of all cash balance plans, followed by Florida and Texas. Within professional sectors, specialty medical groups—particularly anesthesiologists and radiologists—continue to lead adoption, representing more than 35% of all active plans.

Chris Becker, a 2025 PLANADVISER Emerging Leader honoree and relationship manager at Everhart Advisors, supports approximately 70 small business retirement plans and serves as lead consultant on 16 of them. Speaking with PLANADVISER, he notes a rising interest in plan designs that integrate cash balance plans and 401(k)s—a fast-growing segment in which he has developed deep specialization. This trend, he says, reflects how plan design is evolving to meet the complex retirement needs of aging business owners and high-income professionals.

“These designs unlock significant value for small business owners while meaningfully improving participant outcomes—a dual win I’m passionate about delivering,” Becker says.

FuturePlan’s “Cash Balance Outlook and Trends Report” draws from a comprehensive blend of data sources, including business data from 2024 and 2025; 2023 IRS Form 5500 filings via the BrightScope database owned by ISS STOXX, which also owns PLANADVISER; and Department of Labor data from 2022. The report also includes comparative analysis from 2020 to 2023 to highlight evolving trends in plan adoption, design and participant demographics.