44% Of Americans Reach 'Super Saver Status' For Their Retirement Savings — Are You Among Them?

Many Americans are increasingly concerned about the retirement crisis threatening their savings and planning. However, 44% of Americans, referred to as "super savers," are on the right path toward a successful retirement. 

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Recent research from the Transamerica Institute shows super savers contribute more than 10% of their salaries to their retirement plans. The study reveals that 56% of those surveyed are saving less than 10% of their income, while the other 44% have reached "super saver" status by contributing 11% or more. The study also found that 29% of those surveyed contribute more than 15% toward retirement. 

Super savers come from all age groups. Gen Z takes the lead at 53%, while 44% of millennials and boomers can be considered super savers. Gen X follows last, with 40% of their group in the super saver category. 

Ted Jenkin, the CEO and founder of oxygen Financial, tells CNBC that becoming a millionaire through a 401(k) requires consistent contributions at a high rate over many years. "I always tell people there are no microwave millionaires."

Focusing on your savings rate is a big part of becoming a super saver. According to Fidelity, the average total 401(k) savings rate, including employee and employer contributions, rose to 14.2% during the first quarter of 2024, approaching their recommended 15% savings rate. 

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Automatic enrollment plans and annual savings increases have helped many employees boost their deferral rates, with about 60% of employees in such plans enrolled at deferral rates of 4% or higher. However, reaching the optimal 15% target takes time. Catherine Collinson, founding CEO and president of the Transamerica Institute, noted that learning to aim for a higher savings rate often comes through informal channels like word-of-mouth.

"If they have a financial mentor, a family member, or a friend who has taught them about the importance of saving, that also has a huge impact on their focus on saving," Collinson said. Following an example in their life can also aid savers in managing other financial aspects such as budgeting, spending, and finding better-paying jobs.

For those who want to steadily increase their savings rate, experts suggest increasing it by 1% each year until you reach your target — like the 15% Fidelity recommends. Jenkin tells clients to follow the rule of thirds when they receive raises or bonuses to help increase savings further. The rule of thirds is to put one-third of the bonus toward taxes, one-third toward savings and investments, and one-third into discretionary spending. "That's your opportunity to not let lifestyle inflation get in the way," Jenkin explained.

As more people work toward super saver status, it’s important to prioritize long-term financial goals. Whether you’re already among the 44% of super savers or wish to join them, consulting a financial advisor can provide valuable insight into your financial future. They provide personalized advice to help your savings strategies align with your financial goals. 

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