US retirement accounts are growing, but not fast enough
Vanguard has released its annual How America Saves 2019 report. It’s a snapshot of the state of retirement in America that focuses on defined benefit accounts, which are mostly in the form of 401(k)s.
1. Despite the market downturn in 2018 (the S&P 500 was down about 6%), the average defined contribution plan last year increased 4%, largely because participants were saving more. The increase counted only those who also had accounts in 2017, not new accounts.
2. More Americans have retirement accounts: 100 million are now covered by defined contribution accounts, most of it in 401(k)s. Assets are growing and are now in excess of $7.5 trillion. Vanguard is among the biggest, with $1.4 trillion in assets under management in direct contribution accounts.
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