The 401(k) has come a long way since 1978 when Congress tweaked the tax code and jumpstarted the employee-driven retirement savings revolution. Today, 401(k) retirement accounts are the savings vehicle of choice for American workers looking to grow their nest egg, generate wealth, and live comfortably in retirement.
More than one-third of workers now have a 401(k)-style account. That’s nearly double the number of savers with IRAs and triple the number of workers with old-styled pensions, or defined benefit plans. The latest report, "How America Saves" released in 2024 by Vanguard, shows the average 401(k) balance across all age groups is $134,128. However, the average balance — $91,281 — is much lower for those aged 35 to 44.
