In its annual savings trends report Inside America's Savings Plans, Ascensus finds that saving behavior is starting younger—with retirement savers ages 25–34 most likely to be on track to meet their retirement goals. In addition, saving for others is beginning earlier, with more than half of newly opened 529 accounts started when beneficiaries are age 5 or even younger.

Automatic features in retirement plans are helping more workers save more, too, with participation rates up in plans that have auto enrollment features. In fact, participation rates hit 80 percent—10 points higher than participation in plans that don't have auto enrollment.

Still, all is not as good as it could be. The report also finds that 401(k) account balances across all generations and income ranges are relatively low, compared with how much most experts suggest will be required to cover retirement goals.

And 529s aren't in the clear, either, with the average 529 account balance for beneficiaries ages 16–17 only high enough to cover slightly more than half of a “two plus two” college education—consisting of two years at a community college, followed by another two at a public university.

Workers are taking advantage of auto features in both 529 plans and ABLE accounts—the latter designed to support beneficiaries living with disabilities or blindness—to make the contribution process more regular and easier to manage.

“Our analysis offers some preliminary answers as to how and when individuals are saving for a more secure financial future,” David Musto, president at Ascensus, says in a statement.

He adds, “But at its core, it confirms that there's no one-size-fits-all approach to planning for what matters most—retirement, education and healthcare. Employers, state governments and financial advisors continue to play an integral role in encouraging individuals to make the most of the savings tools available to them.”

Instant Insights /

When it comes to saving, more Americans are starting early

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