Vanguard's How America Saves: combined retirement contribution rate hits 12.1%, driven by auto-enrollment
Key points
- The combined employer-plus-employee contribution rate is 12.1%, within Vanguard's recommended 12%-15% range
- The total retirement savings rate rose almost two percentage points over a decade
- 94% of automatically enrolled workers participate in 401(k) plans
Vanguard's 25th How America Saves report shows the total employer-plus-employee retirement contribution rate at 12.1%, within Vanguard's recommended 12%-15% range and level with 2025. The rate rose almost two percentage points over a decade. Vanguard data show 94% of workers automatically enrolled in 401(k) plans participate, and the article attributes the trend to auto-enrollment under SECURE 2.0. Employees can opt out at any time.
Original report: AOL.com ↗AI-assisted brief; may contain inaccuracies. Rely on the original reports and official documents. For information only; not legal, immigration or insurance advice.