401(k) Participation and Savings Reach Record Highs in 2022: Vanguard

Despite market volatility and losses in 2022, US workers kept their 401(k) contributions at a record level, with an average contribution rate of 7.4% of pay, tying 2021's high, according to Vanguard's annual How America Saves report. Including company contributions, the total average contribution rate was 11.3%. Vanguard recommends that investors save 12% to 15% of their pay each year for retirement, including employer contributions, if applicable. The set-it-and-forget-it design of many retirement plans helps savers stay on track.