VALLEY FORGE, PA (June 7, 2022)—Vanguard today released the newest edition of How America Saves, the firm’s seminal report on 401(k) plan design and retirement savings habits. Through its annual, comprehensive analysis of nearly five million 401(k) accounts recordkept at Vanguard, the report reveals additional plan design opportunities employers can address to further improve workers’ retirement readiness. While employers have made significant progress in adopting leading plan designs and features, many participants are facing increasingly complex financial situations and life events that can compromise their retirement savings efforts.
“There is no doubt that plan sponsors’ efforts over the last two decades have helped improve the retirement readiness of millions of Americans. However, workers’ needs are evolving and so too should plan design,” said John James, managing director and head of Vanguard Institutional Investor Group. “Plan sponsors are uniquely positioned to support their employees’ financial well-being with integrated tools, advice, and services that can help improve their overall financial peace of mind.”
For more than two decades, Vanguard’s How America Saves report has served as a premier source of benchmarking and retirement data for plan sponsors and consultants. Along with the companion piece Insights to Action—which provides practical advice for sponsors seeking to optimize their plan design—Vanguard’s research illustrates several areas for improvement that plan sponsors can address to further drive participant outcomes.
Key findings of How America Saves include:
Improving retirement outcomes for all
Vanguard marries deep retirement expertise with technology-driven, client-centric innovation to deliver a comprehensive, world-class recordkeeping experience for plan sponsors and participants alike. As part of Vanguard’s recordkeeping offer, plan sponsors have access to Vanguard Strategic Retirement Consulting, which draws upon its team of attorneys, actuaries, behavioral finance experts, and benefit plan professionals to develop innovative plan features and capabilities designed to improve participant outcomes. As part of the firm’s mission to give all investors the best chance for success, Vanguard also regularly advocates for industry best practices and policy changes, such as the SECURE 2.0 legislation, that help improve Americans’ chances of financial security in retirement.
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.
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