The Plan Sponsor Council of America’s (PSCA)65th Annual Survey of 401(k) and Profit Sharing Plans showed record savings in retirement plans.
In 2021, participant and employer contribution rates combined to produce an average savings rate of 13.9% of pay, which apparently is an all-time high.
2021 also had the highest employer contribution rate in that survey’s history, at 5.6% of pay.
Thirteen percent of employers increased their profit-sharing contributions in 2021, while 5% percent increased their match.
Plan participation of eligible employees rose to 89.2% in 2021, up from 88.5% in 2020. The average deferral also increased at 8.3% of pay, up from 8% in 2020.