I was reading through the 2017 Vanguard report “How America Saves” and I thought a couple stats were interesting and worth sharing.
Context: These data are from 4.4 million Vanguard defined contribution accounts (401(k) and 403(b)). The median income and age is $52,000 and 45 years old, respectively.
Account Type and Contribution
- 65% of plans offer a roth 401(k), and 13% of those who have the option use a roth 401(k)
- 18% of plans offer after-tax contributions, and 8% of those who have the option contribute after-tax
- 2% of plans do not offer employer contributions/matching
- The average contribution rate is 6.2% of salary
- 18% of people contribute more than 10% of salary
- 10% of people max their 401(k)
Allocation
- 72% of people use target date funds, 2/3 of which have their entire account in a single target date fund
- 71% of assets are allocated to equities
- In 2007, people under the age of 30 had about 68% in equities. Now, 87% is allocated to equities for this age group.
Loans
- 16% of people use 401(k) loans, and over 90% of these loans are repaid
Account Balance:
| Age | Average | Median |
|---|---|---|
| <25 | $4,154 | $1,325 |
| 25–34 | $22,256 | $8,192 |
| 35–44 | $61,631 | $23,491 |
| 45–54 | $116,699 | $43,467 |
| 55–64 | $178,963 | $66,643 |
| 65+ | $196,907 | $60,724 |
| All | $96,495 | $24,713 |
Source: How America Saves 2017 (PDF)
Submitted August 07, 2017 at 01:15AM by haikuiscancer http://ift.tt/2uxI8jg
