As of my last update in April 2023, the specific figures regarding the average amount Americans contribute to their 401(k) plans can vary significantly based on age, income, and the source of the data.
However, I can provide some general insights and benchmarks that were relevant at that time, which might help you gauge how you compare.
Generally, contribution rates are often recommended to be between 10% to 15% of one's salary, including both the employee's contributions and any employer match, to ensure a comfortable retirement.
By Age: Younger workers typically contribute a smaller percentage of their income to 401(k) plans compared to older employees, partly due to lower earnings and other financial priorities such as paying off student loans.
Employer Match: Many employers offer a match to the employee's contributions up to a certain percentage of their salary, which significantly affects the total amount saved.
Income Levels: Higher-income individuals often contribute more to their 401(k) plans, both in terms of percentage and absolute dollars
The specific average figures for 401(k) contributions can be obtained from annual reports by major plan administrators like Fidelity, Vanguard, and Charles Schwab
These reports typically highlight average and median contribution rates, account balances by age group, and the impact of employer matches.
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