Pure Benchmarks · Guide
Vanguard Retirement Plan Benchmarking: Plan Reports for Employers, Account Benchmarks for You
Short answer
Vanguard retirement plan benchmarking rests on How America Saves, Vanguard’s annual study of the plans it administers, now in its 25th edition. Alongside it Vanguard publishes industry benchmark reports, a small business edition and 16 industry editions, which show plan sponsors how their plan design compares with others in their industry. The 2026 edition reports average plan participation of 86%, automatic enrollment in 61% of plans and target-date funds in 96%. These reports benchmark the plan, not your account. To benchmark your own Vanguard 401(k), you need your return after contributions, compared with investors holding a similar mix.
Vanguard retirement plan benchmarking means two different things depending on who is asking. For an employer, it is a way to check whether the plan’s design, such as automatic enrollment, default savings rates and the investment menu, matches what similar employers do. For an employee, it is the question of whether the money in the account is doing as well as it should. Vanguard publishes a lot for the first group. This page explains what those reports contain, what they leave out, and how an individual can benchmark their own account.
Headline figures from How America Saves 2026
| Measure | Figure |
|---|---|
| Average overall plan participation | 86% |
| Plans that have adopted automatic enrollment | 61% |
| Plans offering target-date funds | 96% |
| Participants in a professionally managed allocation | 69% |
| Average participant balance, year-end 2025 | $167,970 |
| Median participant balance, year-end 2025 | $44,115 |
| Participants who raised their deferral rate in 2025 | 45% |
From Vanguard’s How America Saves 2026 report page and its 2026 preview, read in October 2026. Pure Benchmarks is not affiliated with Vanguard.
How America Saves: Vanguard’s plan benchmark
How America Saves is Vanguard’s yearly examination of the defined contribution plans it administers and the behavior of their participants. The 2026 edition is the 25th. It tracks plan design, such as automatic enrollment and default deferral rates, and participant behavior, such as participation, savings rates, balances and investment choices. Because it covers millions of participants across Vanguard’s recordkeeping business, plan sponsors use it as a reference point for what is typical.
Vanguard’s industry benchmark reports
Vanguard also publishes benchmark reports by industry, described as showing how a plan compares with others in its industry so sponsors can pinpoint where to adjust plan design. There is a small business edition and 16 industry editions, including construction, finance, health care services, manufacturing, retail trade, technology and utilities. They are aimed at employers and plan committees, and they compare design features and participant outcomes rather than an individual’s returns.
What the 2026 figures say
Average plan participation reached 86%, helped by automatic enrollment, which 61% of plans have adopted. Target-date funds are offered in 96% of plans, and 69% of participants were in a professionally managed allocation such as a single target-date fund or managed account. The average balance was $167,970 at year-end 2025 and the median $44,115, and 45% of participants raised their deferral rate during 2025, most of them through automatic annual increases.
What plan benchmarking does not tell you
A plan benchmark is an average across many people. It cannot tell you whether your own account earned what it should have, because it does not see your fund choices, the timing of your contributions or the changes you made. A plan can rank well on participation and fees while your own account trails people holding a similar mix, and the reverse is just as possible.
Benchmarking your own Vanguard 401(k)
Start with return after contributions: the growth of the account with your own deposits and your employer’s match taken out, because new money is not performance. Compare it with a benchmark that matches your mix of stocks and bonds rather than the S&P 500. Your plan’s annual fee and performance disclosure gives the one, five and ten-year returns of each fund beside a broad market index. Pure Benchmarks, our own product, ranks a linked retirement account against real investors in the same risk category, which shows whether your result was ordinary or unusual for that risk.
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See Your Free Benchmark ReportFrequently asked questions
What is Vanguard retirement plan benchmarking?
It usually refers to Vanguard’s How America Saves study and its industry benchmark reports, which let employers compare their plan’s design and participant outcomes with other plans. It benchmarks plans, not individual accounts.
What is How America Saves?
Vanguard’s annual report on the retirement plans it administers and their participants. The 2026 edition, the 25th, reports average plan participation of 86%, automatic enrollment in 61% of plans and target-date funds offered in 96% of plans.
Does Vanguard publish benchmark reports by industry?
Yes. Vanguard publishes a small business edition and 16 industry editions intended to show plan sponsors how their plan compares with others in the same industry.
Can I use Vanguard’s plan benchmarks to judge my own 401(k)?
Only indirectly. They describe averages across plans and participants. To judge your own account, measure its return after contributions and compare it with a benchmark or with investors holding a similar mix of stocks and bonds.
Is Pure Benchmarks part of Vanguard?
No. Pure Benchmarks is an independent product and is not affiliated with Vanguard. It ranks linked accounts against real investors in the same risk category on a free account.
Keep exploring
- What Is 401(k) Plan Benchmarking, and What Does It Mean for Me?
- Vanguard 401k Benchmarking Tools: What Vanguard Provides and What to Add
- Vanguard 401k Fee Benchmarking Report: What Employers Use and What You Can Check
- How Does My 401(k) Compare to Other People’s?
- Judy Diamond 401(k) Benchmark Report Alternatives in 2026
- 401k Comparator Alternatives in 2026
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This page is an information baseline for comparison only. It is not investment advice and not a recommendation to buy, sell, replace, or transfer any specific asset, account, or firm. Past performance does not guarantee future results. All figures shown are illustrative.