Americans Lift 401(k) Median Balances 27% in 2025 as Auto-Enrollment Reaches 61%
Updated
Updated · Fox Business · Jun 19
Americans Lift 401(k) Median Balances 27% in 2025 as Auto-Enrollment Reaches 61%
3 articles · Updated · Fox Business · Jun 19
Summary
Vanguard said workers with active 401(k) accounts in both December 2024 and December 2025 saw median balances jump 27%, with 94% ending the year with more savings.
Average Vanguard 401(k) balances rose to $167,970 from $148,153, while median balances climbed to $44,115 from $38,176, driven by fresh contributions and strong market returns.
Automatic enrollment helped push participation and saving higher: 61% of Vanguard-defined contribution plans used it in 2025, up from 10% in 2006, while average deferral held at 7.6%.
The report also flagged strain on some households, with hardship withdrawals rising for a fourth straight year to 6% in 2025 from 5% a year earlier amid inflation and easier access.