Which Generation Is Actually Maxing Out Their 401(k)? See How Your Savings Stack Up

Forget the avocado toast memes—one demographic is quietly building a fortress of retirement cash while everyone else is scrolling.

The Silent Savers

They're not the flashy crypto bros or the day-trading influencers. This group operates on a different frequency: automated contributions, employer matches, and the glacial, powerful magic of compound interest. Their strategy isn't posted on social media; it's buried in their HR portal.

The Numbers Don't Lie (But Your Brokerage Statement Might)

While headlines chase the next 100x altcoin, this cohort hits the annual contribution limit—year after year. It's a boring, beautiful discipline that outperforms most get-rich-quick schemes. The real 'financial innovation' isn't a new token, it's consistently funding your 401(k) before the money ever hits your checking account.

The Ultimate Financial Flex

In an economy obsessed with instant gratification, maxing out your retirement account is a radical act of long-term confidence. It's betting on your future self while skeptics bet on volatile markets. One cynical finance jab? The most reliable 'pump' in history isn't a coin—it's your employer's match. Free money, and half the office still leaves it on the table.

Key Takeaways

• Older workers were the most likely to max out their 401(k)s, according to a recent report.
• Those who feel behind on saving can improve their outlook by increasing contributions, delaying Social Security, or working longer.

If you're approaching retirement but aren't on track to have enough money saved, now might be a good time to try upping your 401(k) contributions.

Of all age groups, those aged 55 to 64 were the most likely to have maxed out their 401(k)s in 2024, according to Vanguard data of roughly 4.8 million retirement plan participants.

Of 55 to 64-year-olds, nearly one in five (19%) were maxing out their 401(k)s in 2024, when the limit was $23,000. The group least likely to max out their 401(k) plan was workers younger than 25, with only 3% of this cohort contributing up to the limit.

It's not much of a surprise that this cohort of older workers is more likely to max out their retirement accounts than younger ones, who still have decades to save and typically have lower incomes.

"Coupled with rising costs, inadequate savings and the looming depletion of the Social Security trust fund, these factors underscore a retirement crisis in the US, requiring many households to boost their savings to achieve stable and sufficient income in retirement," wrote Torsten Slok, Chief Economist at Apollo, about these workers.

Why This Matters

Retirement shortfalls are growing, making higher 401(k) contributions crucial for older workers aiming to maintain their lifestyle. Understanding these trends can help consumers adjust savings strategies before it’s too late.

Older workers, in particular, are vulnerable to having inadequate savings for retirement.

According to other research from Vanguard, older generations have lower levels of retirement readiness compared to younger ones. Retirement readiness is measured by one's ability to support a similar lifestyle in retirement.

And this isn't due to an inability to save. Changes to the retirement system in the U.S.—such as increased access to defined contribution plans, like 401(k)s, and modifications to retirement plan features—have positioned younger workers to be better prepared for retirement than their older counterparts.

However, not all hope is lost for older workers. Contributing more to tax-advantaged retirement accounts, delaying Social Security, tapping into home equity, working a few extra years, and spending less in retirement could help them enter retirement more financially prepared.