The average 401(k) savings rate — including employee deferrals and company contributions — has maintained historic levels as plan designs make it easier for workers to set money aside.
In 2023, the average combined savings rate was an estimated 11.7%, which matched a record high from 2022, according to Vanguard's yearly analysis of more than 1,500 qualified plans and nearly 5 million participants.
A separate Fidelity report also found record savings with a combined rate of 14.2% for the first quarter of 2024.
And 43% of employees increased their savings rate that year, Vanguard reported.
In 2023, an estimated 14% of participants hit the 401(k) deferral limit, which was $22,500 for savers under age 50, Vanguard found.
Persons:
deferrals, —, Dave Stinnett
Organizations:
Vanguard, Finance