New report flashes a warning light over 401(k) account balances | CNN Business

  • 📰 CNN
  • ⏱ Reading Time:
  • 24 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 95%

Business News News

Business Business Latest News,Business Business Headlines

The average balance in employer-sponsored savings plans last year was $112,572, well below the $141,542 recorded in 2021

. That’s according to the latest annual report, “How America Saves,” from investment firm Vanguard, which serves as record keeper for defined contribution plans that, combined, have nearly 5 million participants with a median age of 43. Such plans include 401s and 403s, as well as a much smaller universe of plans that employers simply put money into for employees and then employees direct how that money is invested.

But more than a third of employers offer not only a matching contribution but also a nonmatching contribution, meaning they put money into an account on behalf of eligible employees whether or not they are saving themselves. These often take the form of fixed- or variable-rate profit-sharing payments. “Among plans with a nonmatching employer contribution, the average contribution was equivalent to 5.1% of pay; the median contribution, 4.1% of pay,” Vanguard noted.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bud Light loses its title as America's top-selling beer | CNN BusinessAmerica’s top-selling beer is no longer American.
Source: CNN - 🏆 4. / 95 Read more »

The job market enters a new phase as the Great Resignation ends | CNN BusinessAs the dust begins to settle on the Covid-fueled economic tumult of the last few years, one pandemic-era trend appears to be on its way out: The Great Resignation.
Source: CNN - 🏆 4. / 95 Read more »