Individuals who consistently save for retirement tend to have larger 401(k) balances. Here are their unique strategies.

• Many workers are at risk of not having enough savings in retirement.
• Yet others are working to accumulate balances that far exceed their peers.
• Here's what so-called "super savers" do differently.

People with 401(k) plans and other retirement balances are facing a retirement savings crisis as their funds are insufficient for their post-retirement living expenses.

Some employees, referred to as "super savers," are successfully increasing their retirement funds.

According to research from the Transamerica Center for Retirement Studies and Transamerica Institute, super savers are workers who save more than 10% of their salaries for their retirement plans.

According to Transamerica, over half of workers, specifically 56%, are saving 10% or less.

With 15% of the 44% of employees who have reached super saver status putting 11% to 15% of their annual pay toward retirement, and 29% contributing more than 15%, the firm surveyed respondents about the percentage of their salary they were contributing. However, it is unclear if respondents included company contributions in their answer.

The firm surveyed more than 5,700 U.S. workers in 2023.

Inflation continues to disrupt retirement plans, with older voters prioritizing candidates who will safeguard Social Security. Those in certain industries tend to have higher 401(k) balances.

The youngest generation, Generation Z, has the highest percentage of super savers at 53%, while millennials and baby boomers each have 44%, and Generation X has 40%.

But accumulating large retirement balances takes time.

Ted Jenkin, a certified financial planner and the CEO and founder of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta, often tells people that there are no microwave millionaires.

According to Jenkin, a member of the CNBC Financial Advisor Council, it is common for individuals to need a high and sustained contribution rate in order to reach $1 million in their 401(k) over many years.

How retirement savings balances compare

High earners may be able to save more than $23,000 or $30,500 in their 401(k) plan, depending on their retirement plan's rules.

In 2023, 401(k) savers could save up to $22,500 or $30,000 for those 50 and up.

In 2023, 14% of Vanguard's defined contribution clients reached the maximum contribution limits. These savers typically had higher incomes. Specifically, more than half of participants with incomes over $150,000 contributed the maximum amount.

According to Vanguard, 1 in 6 participants over 65 tended to reach the maximum savings thresholds.

Vanguard found that the majority of retirement savers typically have been with their employers for a longer period and have higher account balances. Specifically, almost half of the participants had account balances exceeding $250,000.

According to Transamerica's research, savers with $250,000 or more are more likely to be older, with 44% of baby boomers having reached that savings level, followed by 33% of Gen Xers, 24% of millennials, and 16% of Gen Zers.

Baby boomers, Gen Xers, millennials, and Gen Zers were among the savers who had reached the $1 million mark, with 16%, 9%, 4%, and 4% respectively.

Savers who claim to have reached the total household retirement savings threshold may be including balances accumulated by someone else, according to Catherine Collinson, CEO and president of Transamerica Institute and its Transamerica Center for Retirement Studies division.

What to focus on to achieve 'super saver' status

Experts suggest that concentrating on your savings rate rather than your account balances is key to becoming a super saver.

Recent data shows savers are making progress.

During the first quarter of 2024, the average total 401(k) savings of Fidelity's clients increased to 14.2%, which is the closest it has ever been to the firm's recommended 15% savings rate.

In 2023, Vanguard estimated that the average combined savings rate was 11.7%, which matched a record high from the previous year.

Vanguard reports that approximately 60% of employees in automatic enrollment plans have deferral rates of 4% or higher, which are boosted by annual savings increase.

Frequently, workers learn to aim for a savings rate of 15% or more through informal word-of-mouth communication.

According to Collinson, having a financial mentor, a family member, or a friend who has taught them about the importance of saving has a significant impact on their focus on saving.

By having an example, individuals can better manage other aspects of their financial lives, such as budgeting, spending, increasing their earning potential, or seeking higher paying jobs or careers, according to Collinson.

Jenkin advises that 401(k) savers should aim to increase their savings rate by 1% annually until they reach their target.

Jenkins advises clients to follow the rule of thirds when receiving a pay raise or bonus. One-third should go to taxes, one-third to savings and investments, and the remaining one-third to fun, he emphasizes.

""If you don't let lifestyle inflation take hold, you'll be able to keep your money from disappearing," Jenkin advised."