Increasing 401(k) contributions show shift towards saving, positive for individual's financial health.

From Investing.com: 2025-06-27 01:47:00

Vanguard’s annual How America Saves report shows that in 2024, the average deferral rate for 401(K) plans hit a record high of 7.7%. A total of 45% of participants raised their savings rates last year, the highest in the 24-year history of the survey. Additionally, 96% of plans offered some type of match, with an average match of 4.6% of pay.

The average account balance for 401(K) plan investors was $148,153 in 2024, up 10% from the previous year. Participants saw an average return of 12.7% last year, with 75% of assets invested in equities. Furthermore, 67% of participants were invested in professionally managed funds, primarily target-date funds.



Read more at Investing.com: Why Rising 401(k) Contributions Signal a Shift in Financial Priorities