"Vanguard's 2025 How America Saves report finds that the gap between the highest- and lowest-saving sectors is wide enough to translate into six-figure differences in median account balances."
"Plan participation is the first dividing line. Employees in finance, insurance, and real estate have a plan-weighted participation rate of 75%, while wholesale and retail trade employees come in at 54%."
"The clearest illustration of how these gaps compound is the median account balance by industry. Media, entertainment, and leisure workers carry a median balance of $102,681, while transportation and utilities workers sit at $15,329."
"Medians filter out the high earners and long-tenured savers, leaving a number closer to what a typical employee in that industry actually holds."
The industry of employment plays a crucial role in determining retirement savings outcomes. According to Vanguard's 2025 report, finance, insurance, and real estate sectors show a 75% participation rate in retirement plans, while wholesale and retail trade lag at 54%. Additionally, finance employees defer an average of 7.4% of their pay compared to 6.9% in retail. This results in significant differences in median account balances, with finance workers averaging $102,681, while those in transportation and utilities average only $15,329, highlighting the impact of industry on retirement savings.
Read at 24/7 Wall St.
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