Retirement at a Glance

1. 401(K) HIGHS. The average 401(k) balance in Fidelity 401(k)s was $155,800 in Q2, a 10.5% increase versus Q1. The number of 401(k) millionaires hit a record high of 769,000, a 19% increase. The average total savings rate was unchanged at a record 14.4%, with a record employee savings rate of 9.6. (Source: Fidelity)

2. PEP IN PEPS. Pooled employer plans (PEPs), created under the SECURE Act of 2019 and available to employers since 2021, let unrelated businesses pool together under a single 401(k) plan. Recordkeepers are bullish on their prospects, as 64% expect PEPs to boost their business in 2026,accounting for 20%-40% of business growth. (Source: Cerulli Associates)

3. GOP SHIFT ON SOCIAL SECURITY.A growing number of Republicans, including Sen. Moreno (R-OH) and Reps. Cole (R-OK) and Smucker (R-PA), have said they would consider raising Social Security payroll taxes. Eliminating the $184,500 payroll tax cap without increasing benefits would close 67% of the program’s 75-year solvency gap; with a benefit increase, that drops to 48%. Only about 6% of workers earn above the cap each year. (Source: CNBC)

4. FLAT COLA. Social Security’s annual Cost-of-Living Adjustment (COLA) has not kept up with actual inflation, as benefits have lost 13.7% of their buying power over the last 10 years. Items that have seen the greatest increase in price since 2016 include golf balls (301%) and coffee (186%), but housing and cars have had the largest dollar impact. (Source: The Senior Citizens League)

5. EARLY (UNPLANNED) RETIREMENTS. Among middle-class (i.e., annual income between $50K and $200K) Americans who are still working, 33% expect to either retire after the age of 70 or not at all. Among middle-class Americans who have already retired, 48% retired sooner than originally planned, with 53% citing employment-related reasons. (Source: Transamerica)

6.SOLO RETIREMENT. Most US retirement planning frameworks have been written with couples in mind, but Americans are increasingly approaching or entering retirement as singles. 28% of Americans 65 and older live alone compared to 10% in 1950. About a third of Americans between 45 and 62 are single, and 12% of adults over the age of 50 have no spouse and no children. (Source: Forbes)

7. A MODERATE WINDFALL. Moderate-income earners (i.e., $50K–$100K) pay only 9.1% of federal income taxes but capture 30.1% of retirement tax benefits from 401(k) plans, or more than 3x their tax share. High earners ($200K+) pay 71.4% of the taxes but get just 16.7% of the benefits, less than a quarter of the total. (Source: American Retirement Association)

8. SHORT-STAFFED. The American Federation of Government Employees union has called on Congress to add $3 billion in funding and 20,000 workers to the Social Security Administration to support its digital-first agenda and streamline operations through technology. During President Trump’s second term, the SSA’s staffing level has fallen by 14%, or 7,945 workers, to a 63-year low of 49,439. (Source: MarketWatch)

9. AGING INTO FLORIDA. In a study of US cities where residents 65 and older number at least 7,500 and account for over 20% of the population, Florida reigned supreme, accounting for 11 of the 30 fastest-growing retirement cities. The largest city on the list was Port St. Lucie, FL with 232,491 residents, while Englewood, FL had the highest density of 65+ residents, who account for 60.1% of the population. (Source: MoneyLion)

QUESTION: When employees were asked what benefits would make them more likely to stay with their employer over the next two years, where did increased retirement savings match/contributions rank relative to other factors (e.g., four-day work week, working remotely, and flexible workday hours)?