1 Participants with professionally managed allocations have their entire account balance invested in a single target-date or balanced fund or in a managed account advisory service.
Source: Vanguard, How America Saves 2023.
Notes: Lower-income millennial workers are those in the 25th percentile of the income distribution (median income of roughly $22,000). Upper-middle-income millennials are those in the 70th percentile of the income distribution (median income of roughly $61,000). Higher-income millennial workers are those in the 95th percentile of income (median income of roughly $173,000). The sustainable replacement rate is the percentage of pre-retirement income that a worker can replace throughout retirement in 90% of market and mortality scenarios.
Source: The Vanguard Retirement Outlook: A National Perspective on Retirement Readiness.
- All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
- Investments in target-date funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the work force. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a target-date fund is not guaranteed at any time, including on or after the target date.