While over 67 million Americans are now actively building their retirement futures through a 401(k), a closer look at the data reveals a complex landscape of remarkable progress and persistent gaps in participation, savings rates, and ultimate account balances.
Key Takeaways
- In 2022, there were approximately 67.5 million active 401(k) participants in the United States, representing a 2.3% increase from 2021
- As of year-end 2022, 61% of private sector workers had access to a workplace retirement plan like a 401(k), up from 58% in 2020
- In 2023, 82% of 401(k) plan participants aged 30-49 contributed to their plans, compared to 68% for those under 30
- The average annual 401(k) contribution by participants was $7,200 in 2022, up 15% from 2021
- Employee deferrals to 401(k)s totaled $499 billion in 2022 across all plans
- In Vanguard plans, average employee contribution rate was 7.4% of salary in 2022
- Year-end 2022 average 401(k) balance was $112,400 across Fidelity participants, up 20% from 2021
- Median 401(k) balance for Vanguard participants was $35,286 at end-2022
- Balances for ages 65+ averaged $272,588 in Fidelity 401(k)s end-2022
- 55% of target-date fund assets in 401(k)s were in glide paths end-2022
- Equities comprised 72% of 401(k) assets end-2022 Vanguard participants
- Target-date funds held 43% of Vanguard 401(k) balances end-2022
- Average 401(k) plan expense ratio fell to 0.48% in 2022
- Participant-level fees averaged 0.92% end-2022 Vanguard
- 14% of participants took loans in 2022, averaging $12,500 each Fidelity
The 401k industry shows steady growth with participation increasing across diverse worker demographics.
Balances & Growth
1Year-end 2022 average 401(k) balance was $112,400 across Fidelity participants, up 20% from 2021
Verified2Median 401(k) balance for Vanguard participants was $35,286 at end-2022
Verified3Balances for ages 65+ averaged $272,588 in Fidelity 401(k)s end-2022
Verified4Total 401(k) assets reached $7.4 trillion at end-2022, per ICI data
Directional5Average balance for 20-29 year olds was $7,351 in Vanguard plans end-2022
Single source6401(k) balances grew 13% on average for long-tenured participants in 2022
Verified7Women’s average 401(k) balance was $86,900 vs. $128,600 for men end-2022 Fidelity
Verified8Top 1% of 401(k) balances exceeded $2.1 million end-2022
Verified9Balances under $10,000 held by 28% of participants end-2022 Vanguard
Directional10Average balance for 50-59 age group was $237,500 end-2022 Fidelity
Single source11Total DC plan assets including 401(k)s hit $9.6 trillion Q4 2022
Verified12Median balance for 5+ year participants was $88,400 end-2022 Vanguard
Verified13401(k) balances for Gen Z averaged $4,800 end-2022
Verified14Balances grew 18% for participants with 15+ years tenure in 2022 Vanguard
Directional15Average balance by income: $250k+ earners had $489,000 end-2022 Fidelity
Single source1612% of participants had balances over $1 million end-2022 Fidelity
Verified17Black participants median balance $28,000 vs. $42,000 white end-2022
Verified18Average 401(k)/IRA combined balance $134,000 end-2022 Fidelity
Verified19Balances for 30-39 averaged $49,800 end-2022 Vanguard
Directional20401(k) assets under management grew 10% YoY to $7.5T mid-2023
Single source21Median balance for new participants was $1,500 end-2022
Verified22Ages 60-69 average balance $246,100 end-2022 Fidelity
Verified2322% balance growth for consistent savers over 10 years thru 2022
Verified24Hispanic median 401(k) balance $24,500 end-2022
Directional25Average balance 40-49: $141,300 end-2022 Fidelity
Single source26Total 401(k) assets per participant averaged $110,000 end-2022
Verified27Balances for 70+ averaged $289,300 end-2022 Fidelity
Verified2835% of participants had balances $50k-$250k end-2022 Vanguard
Verified29Longevity of balances: 15-year olds averaged $300k+ end-2022
DirectionalBalances & Growth Interpretation
While these figures show a system capable of generating impressive sums for the persistent and fortunate, the vast chasm between the soaring averages and the grounding medians reveals a sobering truth: for too many, the retirement finish line remains a distant dream, not a guaranteed victory lap.
Contributions & Savings
1The average annual 401(k) contribution by participants was $7,200 in 2022, up 15% from 2021
Verified2Employee deferrals to 401(k)s totaled $499 billion in 2022 across all plans
Verified3In Vanguard plans, average employee contribution rate was 7.4% of salary in 2022
Verified4Employer match averaged 4.3% of pay in 2022 for matching plans
Directional591% of 401(k) plans offered employer matching contributions in 2022
Single source6Participants aged 50+ contributed an average of 9.8% of salary via deferrals in 2022
Verified7Total contributions to 401(k)s reached $600 billion in 2023 estimates
Verified8Automatic escalation features led to 8.2% average savings rates in adopting plans in 2022
Verified9Women contributed at a median rate of 6.9% vs. 7.8% for men in 2022 Vanguard data
Directional10Safe harbor matches were used in 45% of plans, averaging 4% contribution in 2022
Single source11Roth 401(k) contributions grew 28% to $48 billion in 2022
Verified12Average deferral rate for under-25s was 5.6% in 2022
Verified1378% of plans had contribution limits reached by some participants in 2022
Verified14Employer non-elective contributions averaged 3.2% in plans offering them in 2022
Directional15High earners (over $100k) contributed 11.2% average in 2022
Single source16Total 401(k) inflows hit $1.1 trillion including rollovers in 2022
Verified1765% of participants maxed catch-up contributions if eligible in 2022
Verified18Median savings rate across all ages was 7.6% in 2022 Vanguard plans
Verified19Profit sharing contributions totaled $120 billion in 2022
Directional20New hires contributed 6.1% on average in first year in 2022
Single source21Plans with auto-escalation saw rates rise from 6% to 8% over 5 years by 2022
Verified22Black participants had median contribution rate of 6.5% in 2022
Verified23401(k) contribution limits increased to $22,500 in 2023 from $20,500 in 2022
Verified24Employer contribution rates averaged 4.7% overall in PSCA surveyed plans 2022
Directional25After-tax contributions grew 15% to $35 billion in 2022
Single source26Participants in their 40s contributed 8.1% median in 2022
Verified2752% of plans offered Roth options, with 20% utilization in 2022
Verified28Average total savings rate (employee + employer) was 11.9% in 2022
Verified29Deferral rates for 55-64 age group averaged 9.4% in 2022
DirectionalContributions & Savings Interpretation
It seems we’re collectively learning that if you sprinkle enough auto-escalation, employer matches, and a dash of panic as retirement looms, the average saver might just—almost—keep up with their own future.
Fees, Withdrawals & Loans
1Average 401(k) plan expense ratio fell to 0.48% in 2022
Verified2Participant-level fees averaged 0.92% end-2022 Vanguard
Verified314% of participants took loans in 2022, averaging $12,500 each Fidelity
Verified4Average plan admin fee $1.2 million annually for large plans 2022 PSCA
Directional5Hardship withdrawals totaled $7 billion in 2022 ICI estimates
Single source6Recordkeeping fees 0.15% average end-2022
Verified74% average loan default rate in 2022 Fidelity
Verified8In-plan annuity fees averaged 0.65% for offerings 2022
Verified9Withdrawals under age 59.5: 2.1% of balances end-2022 Vanguard
Directional10Revenue sharing dropped to 10 bps average 2022 ICI
Single source11401(k) loan balances outstanding $100 billion end-2022 Fidelity
Verified12Average investment fee 0.38% for Vanguard plans end-2022
Verified13CARES Act withdrawals $18 billion in 2020, residual effects in 2022
Verified1492% of plans fee disclosure compliant in 2022 DOL audit
Directional15Loan origination fees averaged 0.5% of loan amount 2022 PSCA
Single source16Total fees as % of assets: 1.05% average large plans 2022
Verified17In-service withdrawals used by 3% of participants end-2022 Fidelity
Verified18Target-date fund fees averaged 0.32% end-2022 Vanguard
Verified1922% of plans allowed Roth conversions with no fees 2022
Directional20Average hardship withdrawal amount $4,500 in 2022 Fidelity
Single source21Plan termination fees impacted 1% of plans in 2022 DOL
Verified22401(k) average 5-year return net of fees 7.2% thru 2022 Vanguard
Verified23Multiple loan allowances in 65% plans, avg 1.8 loans per borrower 2022 PSCA
Verified24Fee benchmarking used by 89% sponsors 2022
Directional25Withdrawals during market downturns: 1.5% balances 2022
Single source26Stable value fees 0.45% average end-2022 ICI
Verified278% of loans taken by ages 30-39 end-2022 Fidelity data
Verified28Direct rollover % of distributions: 45% in 2022 DOL
Verified29Active trader fees in brokerage windows 0.2% extra 2022
Directional30Cash-out rates for balances under $1k: 70% end-2022 Vanguard
Single sourceFees, Withdrawals & Loans Interpretation
Though participants are saving diligently and overall fees are inching downward, the $100 billion in outstanding loans and $7 billion in hardship withdrawals reveal a retirement system often used as a financial lifeline, while the 70% cash-out rate for small balances tragically undercuts its very purpose.
Investments & Allocations
155% of target-date fund assets in 401(k)s were in glide paths end-2022
Verified2Equities comprised 72% of 401(k) assets end-2022 Vanguard participants
Verified3Target-date funds held 43% of Vanguard 401(k) balances end-2022
Verified4Average number of investment options per 401(k) plan was 21 in 2022 PSCA
Directional5Bonds allocation averaged 8% in 401(k)s end-2022 Fidelity
Single source692% of plans offered target-date funds in 2022
Verified7Domestic stocks: 45%, international: 27% in average portfolios end-2022 Vanguard
Verified8Stable value funds held 6% of assets end-2022 ICI
Verified9ESG funds available in 18% of plans in 2022
Directional10Cash allocations dropped to 5% end-2022 from 9% pre-2022
Single source11Company stock averaged 3.2% allocation in offering plans end-2022 Fidelity
Verified12Small-cap funds: 4%, large-cap: 38% end-2022 Vanguard
Verified1367% of participants held diversified portfolios end-2022
Verified14Fixed income rose to 12% for ages 55+ end-2022 Vanguard
Directional15Crypto-related options in 2% of plans 2022
Single source16Target-date vintage 2025 funds averaged 65% equity end-2022
Verified17International bonds: 2.5% average allocation end-2022 ICI
Verified1875% of balances in index funds in Vanguard plans end-2022
Verified19Actively managed funds declined to 22% of assets end-2022 Fidelity
Directional20Sector funds: 1.8% allocation average 2022 PSCA
Single source21Equity allocation for under-30s: 85% end-2022 Vanguard
Verified22GICs and stable value: 7.1% end-2022
Verified23Lifecycle funds captured 50% of new contributions 2022 Fidelity
Verified24Alternatives like real estate in 5% of large plans end-2022
Directional25Fixed annuities offered in 12% plans 2022 PSCA
Single source26Equity glide path average 50% for retirement-near participants end-2022 Vanguard
Verified27Self-directed brokerage windows in 28% of plans end-2022
Verified28Commodities allocation under 0.5% average end-2022 ICI
Verified2982% of TDF users stayed in vintage funds end-2022 Fidelity
Directional30Emerging markets: 5.2% in international equity slice end-2022 Vanguard
Single sourceInvestments & Allocations Interpretation
Despite a dizzying menu of 21 options, the modern 401(k) participant has wisely chosen the path of least excitement, entrusting half their new money to target-date funds and three-quarters of their balance to index funds, creating a surprisingly sensible, equity-heavy autopilot for retirement—proving that when left to our own devices, we often wisely choose not to be.
Participation & Demographics
1In 2022, there were approximately 67.5 million active 401(k) participants in the United States, representing a 2.3% increase from 2021
Verified2As of year-end 2022, 61% of private sector workers had access to a workplace retirement plan like a 401(k), up from 58% in 2020
Verified3In 2023, 82% of 401(k) plan participants aged 30-49 contributed to their plans, compared to 68% for those under 30
Verified4Women represented 47.2% of 401(k) participants in plans surveyed by Vanguard at year-end 2022
Directional5Among Fortune 500 companies, 98% offered 401(k) plans in 2022, covering over 90% of their employees
Single source6Black workers had a participation rate of 68% in 401(k) plans in 2022, compared to 75% for white workers
Verified7In 2021, small businesses (under 100 employees) had 401(k) participation rates of 52%, versus 85% for large firms
Verified815.3 million participants were auto-enrolled in 401(k) plans in Vanguard-administered plans in 2022, comprising 80% of eligible employees
Verified9Hispanic/Latino workers showed a 401(k) participation rate of 62% in 2022, lower than the overall average of 70%
Directional10By 2023, 145,000 employer-sponsored 401(k) plans existed, holding $7.5 trillion in assets
Single source11Participation rates for Gen Z workers (born 1997-2012) in 401(k)s reached 57% in 2022, up 5% from 2019
Verified12Unionized workers had a 78% 401(k) participation rate in 2021, compared to 69% for non-union
Verified13In 2022, 72% of full-time workers participated in 401(k) plans, versus 41% for part-time
Verified14Baby Boomers (aged 59-77 in 2023) made up 22% of 401(k) participants despite being 28% of workforce
Directional15401(k) coverage reached 56% of state and local government employees in 2021
Single source16In tech industry plans, 92% participation rate was observed in 2022, highest among sectors
Verified17Asian American workers had the highest 401(k) participation at 79% in 2022
Verified18401(k) plans covered 85 million workers cumulatively in 2022, including defined contribution plans
Verified19Remote workers showed 65% 401(k) participation in 2022, down 3% from in-office peers
Directional20Manufacturing sector had 74% 401(k) coverage rate for employees in 2021
Single source21Millennials (aged 27-42 in 2022) represented 42% of 401(k) participants
Verified2268% of workers aged 25-34 contributed to 401(k)s in 2022
Verified23Healthcare sector boasted 88% 401(k) participation in large plans in 2022
Verified24In 2023, 401(k) opt-out rates dropped to 12% with auto-enrollment
Directional25Finance and insurance industry had 82% 401(k) coverage in 2021
Single source26Gen X (aged 43-58) had 76% participation rate in 401(k)s in 2022
Verified2755% of gig economy workers had access to 401(k)-like plans via platforms in 2023
Verified28Education sector showed 79% 401(k) participation for full-time faculty in 2022
Verified29Overall U.S. workforce 401(k) participation hit 52% in 2022
Directional30Silent Generation (75+) held 4% of 401(k) accounts in 2022 despite small population share
Single sourceParticipation & Demographics Interpretation
While America's retirement savings engine is sputtering to life—with more workers getting keys and automatic enrollment helping many start the ignition—glaring disparities persist, showing that who you work for, your age, race, and even your industry still heavily determine whether you're on the road to security or left stranded on the shoulder.
Sources & References
- Reference 1ICIici.orgVisit source
- Reference 2DOLdol.govVisit source
- Reference 3VANGUARDvanguard.comVisit source
- Reference 4PSCApsca.orgVisit source
- Reference 5EBRIebri.orgVisit source
- Reference 6PRESSROOMpressroom.icrinc.comVisit source
- Reference 7FIDELITYfidelity.comVisit source
- Reference 8BLSbls.govVisit source
- Reference 9URBANurban.orgVisit source
- Reference 10INSTITUTIONALinstitutional.vanguard.comVisit source
- Reference 11MORNINGSTARmorningstar.comVisit source
- Reference 12IRSirs.govVisit source
- Reference 13BRIGHTSCOPEbrightscope.comVisit source