Vanguard 2026 data shows widening retirement gap

Fortune’s How America Saves 2026 reveals a troubling retirement picture: the average 401(k) balance rose to a record $167,970 in 2025, yet the median sits at just $44,115, highlighting a sharp inequality where a small group of high balances pulls the average up while most Americans struggle to save enough. With rising hardship withdrawals, the retirement shortfall persists, and Vanguard attributes much of the outcome to plan design and automatic enrollment features rather than individual effort, underscoring that millions remain outside a robust retirement system.