The Economic Times News

Why do only 14% of Americans max out their 401(k), and what does the data reveal about who can actually afford it?

Only 14% of workers max out their 401(k)s, despite rising retirement risks. Data from Vanguard shows the issue is largely structural. Wages have not kept pace with housing, healthcare, and childcare costs. For many workers, especially those earning under six figures, maxing out a 401(k) would require setting aside 20% or more of gross pay. After taxes. Every month. That reality puts the goal out of reach for millions.