401(k) Participation and Balances Reach New Heights: Report
The average balance in employer-sponsored savings plans, including 401(k)s and 403(b)s, was $112,572 last year, down from $141,542 in 2021, according to a report from Vanguard. The median balance was just $27,376, down from $35,345 in 2021. However, more than half of employers offer a matching contribution to their employees' accounts, and nearly 60% of 401(k) plans now have an auto enrollment feature. The report also found that a fifth of participants who save below the recommended 12% to 15% range only need to boost their deferral rate by 1% to 3% of their pay to hit that target range.