How Your Retirement Contributions Stack Up Against Others Your Age—And Why It Matters

Why Retirement Contribution Rates Matter More Than Most People Realize

Most workers have only a rough sense of whether they’re contributing “enough” to their workplace retirement plan. Contribution rates are often set early in a career, when your budget is tight, and may stay unchanged for years. Yet these seemingly modest choices—setting a rate of 5%, 6%, or 7%—hold far more influence over long-term retirement readiness than many people realize.

Defined contribution plans, including 401(k)s, 403(b)s, 457 plans, and other employer retirement accounts, remain the primary way many Americans save for retirement. But most workers have little insight into how their own contribution rate stacks up.

Plan dashboards highlight balances, not behavior, and people rarely discuss their contribution choices with colleagues or friends. That lack of visibility makes it tough to assess whether you’re on track—and many workers don’t realize how much even a modest contribution change can add up to over time.

What the Data Reveal About How People Contribute at Every Age and Income Level

The 2025 installment of J.P. Morgan’s annual “Retirement by the Numbers” report shows that contribution habits vary widely across age and income groups, with contribution rates rising steadily with age. Among middle earners—the group that roughly captures the median for each generation—Gen Z workers contribute about 3.7% on average, Millennials 5.0%, Gen X about 6.0%, and Baby Boomers a bit over 7%.

Income adds another layer to the picture. Within every generation, higher earners contribute more—but not by much. The lowest-earning third of workers contribute 4% to 6.5% on average, with middle earners generally showing slightly higher rates.

Top earners unsurprisingly contribute the most, yet even among those nearing retirement, average rates are under 9%. So while income influences contribution habits, it doesn’t overcome the broader pattern: Most workers contribute less than the commonly recommended 10% or more of pretax income.

For many employees, an employer match program can help, but only to a point. J.P. Morgan’s analysis finds that the average match adds about 3.2% of pay—enough to lift total saving rates but not enough to take most workers to recommended targets.

Fidelity, for example, suggests aiming for a combined saving rate of about 15% of income, including employer contributions. But even with match dollars added in, the chart below shows how many employees still fall short of the 15% target.

Why Small Increases Now Can Make a Big Difference Later

One of the most striking findings from “Retirement by the Numbers” is how much impact even a slight increase to your contribution rate can make. In J.P. Morgan’s models, a worker who raises contributions by just 1% in their mid-20s—starting at a 5% rate and bumping up to 8% over three years—could accumulate about $84,000 more by retirement than someone who never increases their rate. The bigger balance stems from the long runway for compounding—small amounts added earlier have decades to grow.

The timing also matters. That same 1% bump made later in a career still helps, but not nearly as much. J.P. Morgan’s projections show that if you wait until your last 20 years of work to move from 5% to 8%, the additional amount in your final balance is estimated to be only about $22,000. The gap between $22,000 and $84,000 underscores why contribution decisions that feel minor in the moment can meaningfully shift long-term outcomes—and why even a small step upward can improve your retirement picture.

What To Do If You’re Contributing Less Than the Benchmarks

Falling below the average contribution rate for your age or income group doesn’t mean you’re off track—it simply offers a reference point for deciding what to do next. For many workers, the best approach is to start with a small, manageable increase. Raising contributions by even one percentage point is often easier to sustain than a larger jump, and the long-term impact can be meaningful.

Automation can also help. Many workplace plans allow you to schedule annual increases to your contribution rate, often in 1% steps. That structure removes the need to revisit the decision each year and helps keep contributions rising gradually as income grows.

It’s also worth checking whether you’re capturing your full employer match, if your plan offers one. Ensuring that you don’t leave match dollars on the table can quickly boost your total savings rate without increasing your own out-of-pocket costs as much as you might expect.

Even if you’re starting below the benchmarks others your age are reaching, steady progress matters more than hitting any single target overnight. A small increase now, combined with consistent contributions over time, can put you on a stronger trajectory—and make your retirement savings more resilient in the years ahead.