A new study from the Vanguard Group has revealed that more and more 401(k) participants are turning to professional advice, and finding it can make a real difference in bolstering their retirement savings plan. Back in 2007, only 17 percent of Vanguard’s 401(k) account holders were invested in a professionally managed option. By 2012, that figure was up to more than a third. Vanguard expects half of all its 401(k) plan participants to be invested in such plans by 2017.
At the same time, though, participation in plans has stalled out or even dropped. The average deferral rate was 7.3 percent in 2007, but has dipped slightly to 7.0 percent now. You can probably blame the recession for that.
Maybe the more important figure adds in employer matches to 401(k) accounts. The average total contribution rate, counting both employer and employee contributions, is now 10.5 percent, meaning the average worker is getting just over 10 percent of his or her salary put away for retirement.
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