It's a Milestone in US Retirement Saving

The Wall Street Journal takes note of a milestone when it comes to 401(k) plans: For the first time, half of workers in the private sector are contributing to one. Labor Department stats show that the figure reached the 50% mark in 2024, up from 43% a decade earlier. The story suggests this "tipping point" is the result of a push across the country to boost participation, with more states requiring companies to offer the option. Expect the percentage to increase further this year, thanks to a new federal law that requires automatic enrollment for many new plans rather than relying on voluntary opt-ins.

"More people are covered and more are participating, fees are coming down," says Vanguard's David Stinnett. "But there's work left to be done." One area for improvement may be encouraging workers to put more money into the plans, particularly in their early working years, writes Caitlin Cahalan at the Street. Generally speaking, experts recommend people put 15% of their paychecks into a 401(k), but most Americans save an average of 9%, according to the story. (The number of 401(k) millionaires is increasing.)