The 22nd edition of "How America Saves," an annual look at the savings behaviors of nearly 5 million defined contribution plan participants across Vanguard's business, found that plan participants are saving for retirement – but many have not yet reached ideal savings rates.

John James, managing director, Institutional Investor Group, Vanguard, said Vanguard saw record highs in participation, deferral rates and the use of professionally managed allocations in 2022.

Since the passage of the Pension Protection Act in 2006, adoption of automatic enrollment has more than tripled, according to Vanguard. At year-end 2022, nearly 58% of plans and 76% of plans with at least 1,000 participants have adopted the design. Last year saw record plan participation of 83%.