Fifth annual Empowering America’s Financial Journey report shows participation and savings rates have demonstrated resilience but that’s not readiness

How employers are thinking about plan design, participant needs, and the future of workplace retirement and benefits 

GREENWOOD VILLAGE, COLO. June 25, 2026 – Empower launched its fifth annual corporate report – Empowering America’s Financial Journey^TM (EAFJ). The results* show plan participation has proved durable, savings behavior has remained steady, and more participants are interacting with their retirement plans and seeking guidance to support long-term financial decisions. 

WHAT STANDS OUT

Market gains contribute, but staying invested drives long-term growth potential

• Participants in plans for at least five years have seen their balances grow to 2.1x of 2020’s value

Auto-enrollment is the single biggest driver of participation

• 86% versus 36% in plans that don’t use auto-enrollment

Sponsors continue balancing priorities that can move together

• #1 Managing cost/volatility 
• #2 Increasing participation

“We know participant engagement is one of the strongest drivers of savings behavior, more than any other measurement,” said Rachel Molina, head of Workplace Thought Leadership at Empower. “The data showed us that on average, engaged individuals earning less than $40K a year are saving at higher rates than unengaged participants across every income level, including those making significantly more.”

OVER THE NEXT FIVE YEARS

Workplace plans appear likely to evolve from primarily retirement savings vehicles into more central platforms for financial decision-making. 

• Artificial intelligence (AI) and digital capabilities are changing how participants engage with their plans and make decisions. 
• Retirement plans are becoming more tightly linked with healthcare savings, equity compensation, and other benefits programs. 
• Investment innovation, including access to alternative investment options such as private markets and more personalized portfolio strategies, is changing how participants can build and manage long-term wealth.

“Plan sponsors often cite concerns of people opting out if the default rates are set too high but we found that plans with auto-enrollment default rates of 7% or more showed both the highest participation rates (90%) and the highest savings rate (9.6%) in the study,” Molina continued. 

WHAT WE HAVE LEARNED

Since beginning the EAFJ report in 2021, we’ve learned that retirement readiness is influenced by what happens outside 401(k) plans as much as by what happens inside them.

• Disruption tested the system, but savings behavior held.
• Resilience is not the same as readiness.
• Participation is not the problem, progression is. 
• Plan design sets the path; engagement influences who follows it.
• Cost and outcomes don’t have to be a trade-off.

The opportunity ahead is not just to improve retirement plans in isolation, but to better connect these elements into a more cohesive, personalized financial experience that helps participants navigate increasing complexity with greater clarity and confidence.

RELATED REPORTS

Empowering America’s Financial Journey Government Sector 2026

Empower launches 2026 Personal Finance Experience study

EAFJ Community-focused organizations 2026

About Empower

Recognized as a leader in retirement services and wealth management,¹ Empower administers over $2.0 trillion in assets² for more than 20 million individuals through the provision of workplace and individual retirement plans, advice, financial planning, and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok, and Instagram.

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