Vanguard has published the 2025 edition of its annual How America Saves report, featuring more than 110 pages of fresh retirement savings data drawn from nearly 5 million American workers.
Lauren Valente, managing director of Vanguard Workplace Solutions, said automatic retirement plan design features embraced by an increasing number of employers in the last decade are improving how effectively Americans prepare for life after work. So is the assistance of professional financial advisors, with 45% of Vanguard defined contribution plans now providing advisor managed account services for savers who need help with investing and planning decisions — including eight in 10 large employers.
“Today's 401(k) plans are not just about saving,” Valente said in a statement. “They’re about building a financial future for millions of Americans. The advancements we’ve seen in plan design, from auto enrollment to higher default rates, make a real difference.”
That suggestion is borne out in the updated report, which includes data from the 2024 plan year. For example, more savers than ever before have their entire 401(k) balance invested in a professionally managed allocation — most often a target-date investment product or managed account advice.
Even with the substantial progress, Valente noted, some findings in the survey are a little concerning. These include an small uptick in the number of savers tapping their 401(k)s early — and paying the associated penalties and fees — in order to meet emergency spending needs.
“Workers still have obstacles to saving for retirement across their career, including short-term expenses, debt, and frequent job changes,” Valente observed. “We're energized to continue to address these challenges in partnership with plan sponsors and consultants to help ensure a financially secure retirement for all.”
See the slideshow for a selection of (mostly positive) highlights from this year's report.
Credit: Shutterstock
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