In June, Vanguard released their report
How America Saves 2018. Highlights from the report include:
- "In 2017, the average account balance for Vanguard participants was $103,866; the median balance was $26,331. In 2017, Vanguard participants’ average account balances rose by 8% compared with 2016 and median account balances rose by 7%. Two factors are driving the changes in participant account balances. The first is a changing business mix—new plans converting to Vanguard recently have had lower account balances. The second is the rising adoption of automatic enrollment, which results in more individuals saving, but also a growing number of smaller balances."
- "At year- end 2017, nearly 6 in 10 of all Vanguard participants were solely invested in an automatic investment program—compared with just 1 in 10 at the end of 2003 and just 2 in 10 at the end of 2007. Fifty-one percent of all participants were invested in a single target-date fund; another 4% held one other balanced fund; and 3% used a managed account program."
- "Among new plan entrants (participants entering the plan for the first time in 2017), nearly 9 in 10 were solely invested in a professionally managed allocation."
- "Plans with automatic enrollment have a 92% participation rate compared with a participation rate of just 57% for plans with voluntary enrollment. "
- "In 2017, nearly two-thirds of participants received the full employer-matching contribution."
- "Among continuous participants— those with a balance at year-end 2012 and 2017—the median account balance rose by 128% over five years, reflecting both the effect of ongoing contributions and strong market returns during this period."
Vanguard released
this information on June 5, 2018 along with a video summary.
Please consult a qualified financial advisor before making any investment decisions. This blog is for educational purposes only and does NOT constitute individual investment advice.
