Gen Z is contributing to their 401(k)s much earlier than millennials did, reports show, and young women are being particularly aggressive about saving.
Thanks to auto-enrollment, default escalation, and simplified plan designs, American workers are saving more than ever. According to Vanguard’s latest report, the average total savings rate in employer retirement plans has hit an all-time high of 11.7 percent, proving that smart plan design does, in fact, drive better long-term outcomes for retirement readiness.
The personal savings rate in the U.S. averaged 4.7 percent in 2024. This is compared to the average (since 1959) of 8.4 percent. Making matters even more troubling, Americans seem to be getting worse, not better, at saving for their future.
Source: “The Madison Weekly Market Wrap”, July 6, 2025.
Investing involves risk including the potential loss of principal. Consider your risks and objectives before investing. This is for informational purposes only and should not be construed as tax advice. Consult your tax advisor regarding your specific situation.
Securities and advisory services offered through Madison Avenue Securities, LLC, a Registered Investment Advisor, member FINRA and SIPC. Advisory services also offered through Wealth Management Institute, Inc., a Registered Investment Advisor. Wealth Management Institute and Madison Avenue Securities, LLC are not affiliated entities. Frank Cherniawski is securities registered in: AZ, CA, CT, FL, GA, IN, MI, MO, NC, OH, WA and Advisory Licensed in CA and MI with Madison Avenue Securities, LLC. Please inquire with the advisor about your state prior to further discussion or any decisions.
