Americans are saving record levels in their 401(k) accounts, with average contribution rate at 12%.

From Yahoo Finance: 2025-06-25 10:35:00

Americans set aside an all-time high portion of their paycheck in their 401(k) accounts last year, saving an average of 7.7%. When adding employer contributions, the total average participant contribution rate reached 12%. The rise in contributions is attributed to more employers automatically enrolling new employees in retirement plans. Nearly two-thirds of plans set default savings rates at 4% or higher. Target-date funds have become increasingly popular, with assets reaching $4 trillion in 2024. Participants are benefiting from automatic enrollment and increased contributions. However, a growing number of participants are turning to hardship withdrawals, indicating a need for financial wellness resources.



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