Here are some of the plan design features that have helped participants accumulate plan assets at record numbers in 2024.

Auto-enrollment

The adoption of automatic enrollment has more than tripled since year-end 2007, the first year after the Pension Protection Act took effect. At year-end 2024, 61% of Vanguard defined contribution (DC) plans had adopted automatic enrollment, including 78% with at least 1,000 participants. Also, 61% of plans now default employees at a deferral rate of 4% or higher, up from 39% of plans in 2014.

Related: 'A year of progress': Vanguard's annual 'How America Saves' report

In 2024, 93% of auto-enrollment plans had participation rates of 80% or higher, compared with 49% of voluntary enrollment plans. One-third of voluntary enrollment plans had participation rates below 70%.

Saving rates

The average deferral rate was 7.7% in 2024, an all-time high. The median deferral rate was 6.8%. In addition, 16% of participants increased their payroll deferral percentage, while an additional 29% saw their deferral rate increase via an automatic increase feature. That's a boost in saving rates for nearly half (45%) of all participants – an all-time high.

Plan eligibility

In 2024, a record 76% of plans – an all-time high – allowed employees to begin making voluntary contributions immediately after they joined their employer, up from 66% of plans in 2015.

Employer contributions

One-half of Vanguard plans provided only a matching contribution, while 36% provided both a matching and a nonmatching employer contribution and 10% offered only a nonmatching employer contribution. The average value of the promised match was 4.6% of pay; the median, 4.0%. Among plans with a nonmatching employer contribution, the average contribution was 5.3% of pay; the median contribution, 4.5% of pay.

Account balances

In 2024, the average account balance for Vanguard participants was $148,153; the median balance was $38,176. Vanguard participants' average account balances increased by 10% since year-end 2023, driven by an increase in equity and bond markets and ongoing contributions over the year.

Instant Insights /

The power of 401(k) auto-solutions to drive participation rates to all-time highs: Vanguard

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