The “How America Saves” report examines the retirement-saving behaviors of nearly five million Vanguard participants.
What they’re saying: “It is the most comprehensive look at the progress made, the challenges that remain, and the opportunities that lie ahead,” says Lauren Valente, Managing Director, Vanguard Workplace Solutions. “With this detailed study of the state of retirement savings in America, we offer a blueprint to help create a more secure financial future for all.
The big picture:
- The average deferral rate was 7.7 percent in 2024, an all-time high. When you factor in employer contributions, the average retirement contribution rate was 12 percent.
- The average retirement account balance for individuals age 65 and older was $299,442, while the median was $95,425. Vanguard said the sizable discrepancy between the two numbers was due to a small number of very large accounts that significantly raised the average above the median.
- Nearly 3 in 10 retirement savers (of all ages) had an account balance of less than $10,000, while another 3 in 10 had a balance of more than $100,000. Sixteen percent of Vanguard customers saved $250,000 or more.
- The percentage of Vanguard customers taking hardship withdrawals continued to increase, rising from 1.7 percent in 2020 to a record 4.8 percent in 2024.
- The number one reason given for a hardship withdrawal was to avoid a home foreclosure, followed by medical expenses.
