The news: US consumers, especially Gen Xers and baby boomers, have felt panicked about falling behind on retirement savings. But Vanguard’s “How America Saves 2024” report reveals retirement savings have surged since 2022—identifying  some tactics and policies that help US consumers meet their savings goals.

By the numbers: Vanguard’s study revealed a 19% increase in retirement savings balances between 2022 and 2023, and it wasn’t just because their investments performed well.

• Over 40% of Vanguard account holders increased their contribution amounts over this period.

By comparison, 37% of Fidelity retirement account holders increased their contributions between 2022 and 2023.

• And their average total savings rate increased 13.7% over the same period.

Employer policies played a role: Policies that took the burden of decision-making away from the consumer boosted their savings behavior.

For example, auto-enrollment boosts plan participation rates to 94%, while voluntary enrollment participation hovers at 67%, per Vanguard. And the number of employers offering auto-enrollment has increased between 2014 and 2023.

• This policy has helped fuel Gen Z’s retirement savings in particular. They’re 37% more likely to participate in their employers’ retirement plans than previous generations at the same age, per CNBC.

More employers are offering immediate eligibility for retirement plan participation instead of requiring new employees to complete a waiting period. And employers are also offering more retirement products to their employees—such as Roth IRAs in addition to 401(K) plans.

What this means for banks: US consumers don’t have more disposable income than before.

• Yahoo Finance contributor Kerry Hannon says more consumers than ever have raided their retirement savings accounts to cover expenses like medical bills and housing.

But automated enrollment and automating savings processes seem to help customers prioritize setting aside what they can.

Key takeaways: Financial institutions (FIs) that offer automated savings features through their digital banking tools should calculate how much it’s helped their customers improve their savings and communicate the benefits to those who haven’t yet enrolled.

• FIs that offer such features should highlight the value of these tools in savings-related marketing campaigns.

Helping customers set aside what they can in longer-term savings accounts can help foster deeper relationships.

• FIs should also reach out to customers they feel could be doing more with their money—such as those with large sums that have remained in non-interest-bearing accounts for years.