Vanguard’s latest analysis of nearly 5 million defined-contribution plans provides critical benchmarks for American retirement readiness. The 25th edition of the How America Saves report indicates that while average employee deferral rates reached 7.6% in 2025, total savings including employer matches averaged 12.1%.
Data confirms a clear correlation between age and contribution levels. Employee deferral rates climb steadily from 5.5% for workers under 25 to 10.1% for those aged 65 and older. This progressive increase reflects rising incomes and heightened retirement urgency as workers approach traditional withdrawal ages.
Account balances reveal a stark disparity between mean and median outcomes. While the average account balance stood at $167,970 at year-end 2025, the median was significantly lower at $44,115. This gap suggests high-net-worth individuals heavily skew aggregate averages, making the median a more accurate indicator for typical savers.
Median balances progress from $18,732 for ages 25-34 to $107,269 for pre-retirees aged 55-64. Conversely, average balances for the same cohorts range from $50,261 to $305,006. Financial experts note these figures represent single accounts and may not capture total household wealth held in IRAs or spousal plans.
For investors lagging behind benchmarks, increasing personal deferral rates remains the most effective lever for long-term compounding. Consistent contributions, combined with employer matching, are essential for bridging the gap between current savings and retirement security.