--- title: The Average 401(k) Balance Rose 19% Last Year. How Do You Compare? description: Thanks partly due to automatic enrollment, 401(k) participation and contribution rates hit record highs in 2023, Vanguard reports. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 597 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2024-06-25T19:54:53.000Z' modified: '2024-06-25T19:54:53.000Z' section: Retirement tags: - News word_count: 476 canonical: https://money.com/average-401k-balance-contributions-rate-rising/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Workers with money in the background](https://img.money.com/2024/06/News-American-Workers-Retirement.jpg) Workers saved for retirement in 401(k)s and other employer-sponsored plans at a record rate last year, and the average account balance rose nearly 20% thanks largely to a strong stock market. According to new data from Vanguard, the average deferral rate among plan participants was 7.4% in 2023, tying the previous all-time high in 2021. Counting employer contributions, the average contribution rate was 11.7%, also a record. The investment management company’s annual [“How America Saves” report](https://institutional.vanguard.com/insights-and-research/report/how-america-saves.html) analyzes data on nearly 5 million workers' retirement accounts, which include 401(k)s, 403(b)s and a small number of other plans. The 100-plus page report provides a detailed picture of [retirement savings](https://money.com/save-for-retirement/) trends. “2023 was a year of progress,” John James, managing director and head of Vanguard’s institutional investor group, said in the report. “Despite stubborn inflation, plan participation and participant saving rates reached all-time highs.” ## If you currently have a 401k but are looking for different ways to extend your portfolio, rolling over to a Gold IRA is one of the best ways to do so! ### American Hartford Gold can help protect your assets in tax-advantaged accounts by providing metal IRA. Why wait? Select your state to get started today! [Invest in Gold](https://money.com/pr/x3c4ebd2b55c?ap_referrer=%2Faverage-401k-balance-contributions-rate-rising%2F) James noted that more plans now have automatic enrollment, which is contributing to the increase in participation and savings rates. The share of plans that automatically enroll workers is up to 59%, compared to 50% in 2019. Millions of workers use 401(k)s to save, and the tax advantages make them a powerful tool for retirement. These plans allow employees to contribute pre-tax income to their accounts and invest the money in funds or other options. Savings are not taxed until you take withdrawals, which is favorable assuming you'll be in a lower tax bracket when you need the money in retirement. ## 401(k) contributions and balances rise Vanguard reports that a record number of participants increased their account contribution rate in 2023. The share that made an upward adjustment was 43%, “driven in part by plan design features like automatic annual savings increases,” according to the report. The average account balance was $134,128 last year, an increase of 19% from the prior year. The growth, driven by strong stock market performance, was much-needed good news for retirement savers after 2022 went down as the [worst year for retirement account performance](https://money.com/average-401k-balance-plummeted-last-year/) since the Great Recession. ## Average retirement account balance by age If you're wondering how your retirement savings stack up for your age group, here's a breakdown of the average Vanguard account balances in 2023: - **Under 25:** $7,351 - **25 to 34:** $37,557 - **35 to 44:** $91,281 - **45 to 54:** $168,646 - **55 to 64:** $244,750 - **65 and up:** $272,588 While the increases in savings rates and balances are positive developments, many Americans are still behind on saving for retirement. According to a separate survey from [Schroders](https://www.businesswire.com/news/home/20240625317381/en/Americans-With-Workplace-Retirement-Plans-Say-1.2-Million-Is-Needed-to-Retire-Comfortably) released Tuesday, 29% of workplace retirement plan participants expect to retire with more than $1 million in their accounts. But as the data above indicates, average balances are far off that level. ### Top Precious Metals Company on Inc. 5000 ![Invest in Gold](https://s3.consumersadvocate.org/prd/image/image/19305/medium_414558a1-29d4-465e-b5d1-921febc39ed2.png) Our Partner [Invest in Gold](https://money.com/go/928a972448b4?bidid=4029161866&pmeta=p129-c736-u23969&ptid=662230304&ptoken=fa7fa362e603136134cc3e0273ff4428) ### Endorsed by Robert Kiyosaki — Up to $25K in FREE Silver on Qualifying Purchases ![Invest in Gold](https://s3.consumersadvocate.org/prd/image/image/24353/medium_69e2748f-b29f-4686-895b-4e103b4d0c3e.png) Our Partner [Invest in Gold](https://money.com/go/2d2b5aa43efe?bidid=4029161870&pmeta=p129-c736-u23969&ptid=662230304&ptoken=4e0647730c2bc983fd9a365b73aeb2c9) ### Qualify for up to 10% in FREE silver ![Invest in Gold](https://s3.consumersadvocate.org/prd/image/image/21155/medium_2ce64332-874c-41c0-a3b9-7f738e834f1c.png) Our Partner [Invest in Gold](https://money.com/go/6a377d86205e?bidid=4029161863&pmeta=p129-c736-u23969&ptid=662230304&ptoken=ecd9b421af75cd4fb394f41b6f8a9211) ![](https://s3.consumersadvocate.org/prd/image/image/19305/medium_414558a1-29d4-465e-b5d1-921febc39ed2.png) American Hartford Gold can help you take control of your financial future [Invest in Gold](https://money.com/pr/u1f7b2bc903e?ap_referrer=%2Faverage-401k-balance-contributions-rate-rising%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/average-401k-balance-contributions-rate-rising/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "401(k)", "item": "https://money.com/401k/" }, { "@type": "ListItem", "position": 4, "name": "The Average 401(k) Balance Rose 19% Last Year. 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