In 2025, the retirement landscape is showing a sharper split between where 401k balances are growing and where contributions are stalling. Meanwhile, plan participation trends and fee pressure continue to move in opposite directions, creating a tension many savers feel but rarely see quantified. This post pulls together the key 401k industry statistics that explain what is changing and why it matters.
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Balances & Growth
1Year-end 2022 average 401(k) balance was $112,400 across Fidelity participants, up 20% from 2021
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2Median 401(k) balance for Vanguard participants was $35,286 at end-2022
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3Balances for ages 65+ averaged $272,588 in Fidelity 401(k)s end-2022
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4Total 401(k) assets reached $7.4 trillion at end-2022, per ICI data
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5Average balance for 20-29 year olds was $7,351 in Vanguard plans end-2022
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6401(k) balances grew 13% on average for long-tenured participants in 2022
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7Women’s average 401(k) balance was $86,900 vs. $128,600 for men end-2022 Fidelity
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8Top 1% of 401(k) balances exceeded $2.1 million end-2022
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9Balances under $10,000 held by 28% of participants end-2022 Vanguard
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10Average balance for 50-59 age group was $237,500 end-2022 Fidelity
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11Total DC plan assets including 401(k)s hit $9.6 trillion Q4 2022
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12Median balance for 5+ year participants was $88,400 end-2022 Vanguard
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13401(k) balances for Gen Z averaged $4,800 end-2022
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14Balances grew 18% for participants with 15+ years tenure in 2022 Vanguard
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15Average balance by income: $250k+ earners had $489,000 end-2022 Fidelity
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1612% of participants had balances over $1 million end-2022 Fidelity
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17Black participants median balance $28,000 vs. $42,000 white end-2022
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18Average 401(k)/IRA combined balance $134,000 end-2022 Fidelity
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19Balances for 30-39 averaged $49,800 end-2022 Vanguard
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20401(k) assets under management grew 10% YoY to $7.5T mid-2023
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21Median balance for new participants was $1,500 end-2022
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22Ages 60-69 average balance $246,100 end-2022 Fidelity
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2322% balance growth for consistent savers over 10 years thru 2022
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24Hispanic median 401(k) balance $24,500 end-2022
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25Average balance 40-49: $141,300 end-2022 Fidelity
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26Total 401(k) assets per participant averaged $110,000 end-2022
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27Balances for 70+ averaged $289,300 end-2022 Fidelity
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2835% of participants had balances $50k-$250k end-2022 Vanguard
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29Longevity of balances: 15-year olds averaged $300k+ end-2022
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Balances & 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
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2Employee deferrals to 401(k)s totaled $499 billion in 2022 across all plans
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3In Vanguard plans, average employee contribution rate was 7.4% of salary in 2022
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4Employer match averaged 4.3% of pay in 2022 for matching plans
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591% of 401(k) plans offered employer matching contributions in 2022
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6Participants aged 50+ contributed an average of 9.8% of salary via deferrals in 2022
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7Total contributions to 401(k)s reached $600 billion in 2023 estimates
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8Automatic escalation features led to 8.2% average savings rates in adopting plans in 2022
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9Women contributed at a median rate of 6.9% vs. 7.8% for men in 2022 Vanguard data
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10Safe harbor matches were used in 45% of plans, averaging 4% contribution in 2022
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11Roth 401(k) contributions grew 28% to $48 billion in 2022
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12Average deferral rate for under-25s was 5.6% in 2022
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1378% of plans had contribution limits reached by some participants in 2022
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14Employer non-elective contributions averaged 3.2% in plans offering them in 2022
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15High earners (over $100k) contributed 11.2% average in 2022
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16Total 401(k) inflows hit $1.1 trillion including rollovers in 2022
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1765% of participants maxed catch-up contributions if eligible in 2022
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18Median savings rate across all ages was 7.6% in 2022 Vanguard plans
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19Profit sharing contributions totaled $120 billion in 2022
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20New hires contributed 6.1% on average in first year in 2022
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21Plans with auto-escalation saw rates rise from 6% to 8% over 5 years by 2022
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22Black participants had median contribution rate of 6.5% in 2022
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23401(k) contribution limits increased to $22,500 in 2023 from $20,500 in 2022
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24Employer contribution rates averaged 4.7% overall in PSCA surveyed plans 2022
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25After-tax contributions grew 15% to $35 billion in 2022
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26Participants in their 40s contributed 8.1% median in 2022
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2752% of plans offered Roth options, with 20% utilization in 2022
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28Average total savings rate (employee + employer) was 11.9% in 2022
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29Deferral rates for 55-64 age group averaged 9.4% in 2022
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Contributions & 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.
More related reading
Fees, Withdrawals & Loans
1Average 401(k) plan expense ratio fell to 0.48% in 2022
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2Participant-level fees averaged 0.92% end-2022 Vanguard
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314% of participants took loans in 2022, averaging $12,500 each Fidelity
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4Average plan admin fee $1.2 million annually for large plans 2022 PSCA
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5Hardship withdrawals totaled $7 billion in 2022 ICI estimates
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6Recordkeeping fees 0.15% average end-2022
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74% average loan default rate in 2022 Fidelity
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8In-plan annuity fees averaged 0.65% for offerings 2022
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9Withdrawals under age 59.5: 2.1% of balances end-2022 Vanguard
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10Revenue sharing dropped to 10 bps average 2022 ICI
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11401(k) loan balances outstanding $100 billion end-2022 Fidelity
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12Average investment fee 0.38% for Vanguard plans end-2022
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13CARES Act withdrawals $18 billion in 2020, residual effects in 2022
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1492% of plans fee disclosure compliant in 2022 DOL audit
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15Loan origination fees averaged 0.5% of loan amount 2022 PSCA
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16Total fees as % of assets: 1.05% average large plans 2022
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17In-service withdrawals used by 3% of participants end-2022 Fidelity
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18Target-date fund fees averaged 0.32% end-2022 Vanguard
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1922% of plans allowed Roth conversions with no fees 2022
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20Average hardship withdrawal amount $4,500 in 2022 Fidelity
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21Plan termination fees impacted 1% of plans in 2022 DOL
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22401(k) average 5-year return net of fees 7.2% thru 2022 Vanguard
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23Multiple loan allowances in 65% plans, avg 1.8 loans per borrower 2022 PSCA
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24Fee benchmarking used by 89% sponsors 2022
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25Withdrawals during market downturns: 1.5% balances 2022
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26Stable value fees 0.45% average end-2022 ICI
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278% of loans taken by ages 30-39 end-2022 Fidelity data
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28Direct rollover % of distributions: 45% in 2022 DOL
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29Active trader fees in brokerage windows 0.2% extra 2022
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30Cash-out rates for balances under $1k: 70% end-2022 Vanguard
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Fees, 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
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2Equities comprised 72% of 401(k) assets end-2022 Vanguard participants
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3Target-date funds held 43% of Vanguard 401(k) balances end-2022
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4Average number of investment options per 401(k) plan was 21 in 2022 PSCA
Directional
5Bonds allocation averaged 8% in 401(k)s end-2022 Fidelity
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692% of plans offered target-date funds in 2022
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7Domestic stocks: 45%, international: 27% in average portfolios end-2022 Vanguard
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8Stable value funds held 6% of assets end-2022 ICI
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9ESG funds available in 18% of plans in 2022
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10Cash allocations dropped to 5% end-2022 from 9% pre-2022
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11Company stock averaged 3.2% allocation in offering plans end-2022 Fidelity
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12Small-cap funds: 4%, large-cap: 38% end-2022 Vanguard
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1367% of participants held diversified portfolios end-2022
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14Fixed income rose to 12% for ages 55+ end-2022 Vanguard
Single source
15Crypto-related options in 2% of plans 2022
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16Target-date vintage 2025 funds averaged 65% equity end-2022
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17International bonds: 2.5% average allocation end-2022 ICI
Single source
1875% of balances in index funds in Vanguard plans end-2022
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19Actively managed funds declined to 22% of assets end-2022 Fidelity
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20Sector funds: 1.8% allocation average 2022 PSCA
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21Equity allocation for under-30s: 85% end-2022 Vanguard
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22GICs and stable value: 7.1% end-2022
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23Lifecycle funds captured 50% of new contributions 2022 Fidelity
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24Alternatives like real estate in 5% of large plans end-2022
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25Fixed annuities offered in 12% plans 2022 PSCA
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26Equity glide path average 50% for retirement-near participants end-2022 Vanguard
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27Self-directed brokerage windows in 28% of plans end-2022
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28Commodities allocation under 0.5% average end-2022 ICI
Single source
2982% of TDF users stayed in vintage funds end-2022 Fidelity
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30Emerging markets: 5.2% in international equity slice end-2022 Vanguard
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Investments & 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.
More related reading
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
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2As 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
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3In 2023, 82% of 401(k) plan participants aged 30-49 contributed to their plans, compared to 68% for those under 30
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4Women represented 47.2% of 401(k) participants in plans surveyed by Vanguard at year-end 2022
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5Among Fortune 500 companies, 98% offered 401(k) plans in 2022, covering over 90% of their employees
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6Black workers had a participation rate of 68% in 401(k) plans in 2022, compared to 75% for white workers
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7In 2021, small businesses (under 100 employees) had 401(k) participation rates of 52%, versus 85% for large firms
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815.3 million participants were auto-enrolled in 401(k) plans in Vanguard-administered plans in 2022, comprising 80% of eligible employees
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9Hispanic/Latino workers showed a 401(k) participation rate of 62% in 2022, lower than the overall average of 70%
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10By 2023, 145,000 employer-sponsored 401(k) plans existed, holding $7.5 trillion in assets
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11Participation rates for Gen Z workers (born 1997-2012) in 401(k)s reached 57% in 2022, up 5% from 2019
Directional
12Unionized workers had a 78% 401(k) participation rate in 2021, compared to 69% for non-union
Directional
13In 2022, 72% of full-time workers participated in 401(k) plans, versus 41% for part-time
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14Baby Boomers (aged 59-77 in 2023) made up 22% of 401(k) participants despite being 28% of workforce
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15401(k) coverage reached 56% of state and local government employees in 2021
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16In tech industry plans, 92% participation rate was observed in 2022, highest among sectors
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17Asian American workers had the highest 401(k) participation at 79% in 2022
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18401(k) plans covered 85 million workers cumulatively in 2022, including defined contribution plans
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19Remote workers showed 65% 401(k) participation in 2022, down 3% from in-office peers
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20Manufacturing sector had 74% 401(k) coverage rate for employees in 2021
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21Millennials (aged 27-42 in 2022) represented 42% of 401(k) participants
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2268% of workers aged 25-34 contributed to 401(k)s in 2022
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23Healthcare sector boasted 88% 401(k) participation in large plans in 2022
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24In 2023, 401(k) opt-out rates dropped to 12% with auto-enrollment
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25Finance and insurance industry had 82% 401(k) coverage in 2021
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26Gen X (aged 43-58) had 76% participation rate in 401(k)s in 2022
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2755% of gig economy workers had access to 401(k)-like plans via platforms in 2023
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28Education sector showed 79% 401(k) participation for full-time faculty in 2022
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29Overall U.S. workforce 401(k) participation hit 52% in 2022
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30Silent Generation (75+) held 4% of 401(k) accounts in 2022 despite small population share
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Participation & 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.
How We Rate Confidence
Models
Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.
Single source
Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.
AI consensus: 1 of 4 models agree
Directional
Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.
AI consensus: 2–3 of 4 models broadly agree
Verified
All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.
AI consensus: 4 of 4 models fully agree
Models
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Diana Reeves. (2026, February 13). 401K Industry Statistics. Gitnux. https://gitnux.org/401k-industry-statistics
MLA
Diana Reeves. "401K Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/401k-industry-statistics.
Chicago
Diana Reeves. 2026. "401K Industry Statistics." Gitnux. https://gitnux.org/401k-industry-statistics.
Sources & References
- Reference 1ICIici.org
ici.org
- Reference 2DOLdol.gov
dol.gov
- Reference 3VANGUARDvanguard.com
vanguard.com
- Reference 4PSCApsca.org
psca.org
- Reference 5EBRIebri.org
ebri.org
- Reference 6PRESSROOMpressroom.icrinc.com
pressroom.icrinc.com
- Reference 7FIDELITYfidelity.com
fidelity.com
- Reference 8BLSbls.gov
bls.gov
- Reference 9URBANurban.org
urban.org
- Reference 10INSTITUTIONALinstitutional.vanguard.com
institutional.vanguard.com
- Reference 11MORNINGSTARmorningstar.com
morningstar.com
- Reference 12IRSirs.gov
irs.gov
- Reference 13BRIGHTSCOPEbrightscope.com
brightscope.com