Highlights From “How America Saves 2024” Report

Highlights From “How America Saves 2024” Report

Vanguard released the 23rd edition of its “How America Saves” report, which spotlighted the retirement-saving behaviors of nearly five million Vanguard participants.

Go deeper: The report found that employees are contributing record amounts into their 401(k)s: 7.4 percent of their earnings in 2023 — almost 12 percent if you include employer contributions.

  • Vanguard attributed the increase to greater adoption of automatic enrollment plans of which 60 percent default employees at a four percent or higher deferral rate.
  • In 2023, the average account balance for Vanguard participants was $134,128; the median balance was $35,286.
  • Vanguard participants’ average account balances increased by 19 percent since year-end 2022, driven by an increase in equity and bond markets and ongoing contributions over the year.
  • Hardship withdrawal activity increased as well, with 3.6 percent of participants initiating a hardship withdrawal, up from 2.8 percent in 2022. The main reason for hardship withdrawals was to avoid a home foreclosure.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.