Vanguard's latest "The State of American Savings Report" indicates that the average balance in US 401(k) plans has risen to a record $167,970. However, the report also highlights that due to a small number of high-net-worth savers skewing the average, the median balance is only $44,115, which more accurately reflects the actual situation for a typical saver. The report also mentions that the personal savings rate dropped to 2.8% in Q2 2026, while the average annual household expenditure increased to $78,535 in 2024, factors that collectively squeezed savings contributions. Furthermore, starting in 2026, employees aged 50 and over with annual incomes exceeding $150,000 must direct their catch-up contributions into a Roth 401(k) account.