The “How America Saves” report examines the retirement-saving behaviors of nearly five million Vanguard participants.
What they’re saying: “More than 25 years of data and insights make it clear—strong default contribution options and automatic features have made saving for retirement more accessible and effective for more Americans than ever before,” said Lauren Valente, Managing Director, Workplace Solutions. “We are proud to highlight the progress the industry has made with better plan design helping more people save, stay invested, and build stronger financial futures.”
The big picture:
- The average contribution rate was 7.6 percent in 2025. When you factor in employer contributions, the average retirement contribution rate was 12.1 percent.
- The average retirement account balance for individuals age 65 and older was $330,186.
- One in four Vanguard customers had a retirement account balance of less than $10,000; 35 percent had a balance of more than $100,000; and 18 percent had a balance of $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 six percent in 2025.
- The number one reason given for a hardship withdrawal was to avoid a home foreclosure, followed by medical expenses.
