How to Reach the 401(k) Goal Only 14% Achieve and Why It Matters for Your Financial Security

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Key Takeaways Only 14% of participants contributed the annual maximum in Vanguard-run defined contribution retirement plans such as 401(k)s in 2024. Just over one-third of non-retirees said they thought their retirement savings plan was on track in 2023, according to a Federal Reserve survey. Why You Should Aim for the MaxAs you would expect, higher earners can typically more easily contribute the maximum amount to their retirement savings plans. In comparison, suppose you just started saving for retirement at age 30 and don't reach $100,000 in your 401(k) until age 40. Maybe you'll go work at a startup that doesn't offer a retirement plan, for instance.