It seems Americans are saving more for retirement, with retirement account balances at an all-time high, according to a report by Fidelity Investments.
In the report, the company noted that average overall contributions are also on the rise – nudging closer to its guideline of saving 15% annually.
This is great news – considering in the past, most people haven’t been great about retirement saving!
So, what does this news look like?
According to Fidelity, retirement account balances are averaging $132,300 in 401(k) accounts and $119,300 in 403(b) accounts in 2024.
In addition, employees are saying that employer retirement plans are a must-have benefit – which is good news for companies that offer them in this competitive job market.
Fidelity also released its latest Q4 retirement analysis, showing that while balances dipped a bit, most balances are up 11%.
It also showed that Gen X are saving more – and seeing higher balances.
“This year, retirement savers experienced several quarters in a row of upward growth, with account balances making significant gains over the course of 2024,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “We are pleased to see so many individuals begin 2025 with a strong financial foundation and the savings behaviors in place that will help them better navigate what may come in the year ahead.”
However, Fidelity’s data shows that many plan participants aren’t receiving their full employer contribution, with Black, Latino and multiracial employees lagging the most.
To address this, Fidelity suggests companies auto enroll participants at the full match rate.
Now is a great time to take a look at what you are saving – and learn all you can so you can meet (or even exceed) your retirement goals.
Do you still have questions?
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