401(k) Balances Reached Record Highs in 2024, Vanguard Reports
Vanguard's 'How America Saves' report shows workplace retirement savers hit record 401(k) balances last year. Here's how your savings stack up.
American workers saw their 401(k) retirement balances climb to record levels in 2024, according to Vanguard's annual "How America Saves" report, one of the most closely watched benchmarks for workplace retirement savings in the country. The findings signal a strong year for millions of Americans enrolled in employer-sponsored retirement plans.
Vanguard's report serves as a key indicator of retirement readiness across the U.S. workforce, tracking contribution rates, account balances, and savings behaviors among plan participants. Record-high balances suggest a combination of sustained market gains and continued employee contributions drove meaningful growth in retirement nest eggs over the past year.
Read more Annuities in 401(k) Plans: What Workers Need to Know Now →
For retirement savers, the milestone offers a moment to benchmark personal progress against national averages — a useful exercise for anyone assessing whether they are on track for a financially secure retirement. Financial advisers often recommend comparing both average and median balance figures, since averages can be skewed upward by high earners with outsized account values.
While the headline numbers are encouraging, analysts caution that record aggregate balances do not necessarily mean all workers are adequately prepared for retirement. Disparities in access to workplace plans, contribution rates, and income levels mean the gains are not uniformly distributed across the workforce. Younger workers and lower-income employees often carry significantly smaller balances than national averages suggest.
Continue reading at MarketWatch.com for the full breakdown of Vanguard's data and to see exactly how your 401(k) balance compares to workers in your age group.
