September 2025 401k Update: Your Raise Means More In Your 401k!
You read that right. During the life of this agreement the negotiated company contribution of ten percent outlined in the UAW/GM National Agreement for a full-scale member will generate a 401k that is richer than most Americans. Unbelievable? Let’s look at the numbers.
Yet, many people cannot save as much as they would like to in their 401(k)s. Many do not save anything during the early years of their career. But it might still be possible to catch up. Here is a look at how long it would take you to save the average 401(k) balance if you are starting from zero.
The average 401(k) balance was $134,128 in 2024, according to Vanguard’s “How America Saves” report. However, the median balance — a better representation of what the typical American has — is just $35,286.
These numbers presented next will be based on the current full-scale wage of a Production worker. In fact, there will be an increase in wages that will accelerate the amounts saved. With that in mind, here we go with the numbers from September 2025 wage increase. Of course, those members in upgraded positions and/or receiving shift premiums will earn more than the base wage.
The GM production hourly full-scale wage is $38.07 x 40 hours per week = $1,522.80 a week. Multiply $1,552.80 per week x 52 weeks per year = $79,185.60.
Let’s take those yearly earnings and see what the company 10% contribution looks like.
$79,185.60 x 10% GM contribution to the members 401k = $7,918.56 per year company contribution to the members 401k.
Divide the typical American 401k figure of $35,286 from the Vanguard article by the yearly contribution of $7,918 and you get 4.45. 4.45 years for a full-scale member to save $35,286..00, as much as the median American 401k, without contributing a penny from their paycheck!
The 10% company contribution negotiated in the 2023 National Agreement is a life changing benefit that provides an exceptional foundation for members retirement that is not available to most American workers. The exact language outlining the benefit is pictured below.
