The Barron’s Roundtable discusses reports that members of Gen Z are aggressive about wanting to retire.
Gen Xers are ramping up their retirement building efforts, according to recently released data from Fidelity Investments.
The financial services company said Thursday in its third-quarter retirement analysis that Gen Xers are spending money in individual retirement accounts (IRA) increased total contributions by a whopping 35% year-over-year in 2023.
He considered Gen X to be people born between 1965 and 1980.
Serious mature couple calculates bills for payment, checks domestic finances, leads middle-aged family, plans budget, expenses, gray-haired man and woman reading credit documents at home (Istock/iStock)
According to Fidelity, more Gen Xers also put more people into their IRAs in the third quarter than last year, a 23% jump.
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The financial services company said in a press release that Gen Xers made “impressive gains across all retirement accounts,” including IRAs, 401(k)s and 403(b)s.
When it came to Gen Xers, who played the long-term game and regularly put money into 401(k) plans over the past 15 years, their average account balance increased 6% quarter-over-quarter to $586,100, according to Fidelity data.
“We’re excited to see Gen-X retirees continue to make strong gains with their retirement savings,” Fidelity Wealth President Roger Stiles said in a statement. “The oldest representatives of this generation will be approaching retirement in the next five to ten years, making this an ideal time to focus on ensuring that they can live more comfortably throughout their retirement years.”
It comes after Fidelity found that people who saved for their golden years overall “experienced another quarter of growth thanks to continued high contribution levels and positive market conditions.” His analysis included more than 49 million retirement accounts.
Two types of retirement plans — 401(k)s and 403(b)s — reached their “highest average balance on record” in the third quarter, a financial services company said.
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For 401(k) accounts, the average balance was $132,300 in the third quarter, up 4% quarter-over-quarter and up 23% year-over-year, according to Fidelity.
Some young Americans choose to “micro-retire” early in their careers rather than save fully for a permanent retirement later in life. (Getty Images/Getty Images)
The average balance in 403(b) plans also increased to $119,300.
Meanwhile, the average IRA balance was $129,200 for the quarter.
Fidelity Retirement Analysis said the overall average savings rate “remained stable” in the third quarter. It pegged it at 14.1%, just shy of the company’s recommended 15%.
“Continuous retirement contributions during different market cycles are important, but regardless of what happens in the market, maintaining this commitment over the long term is what will help set Americans up for a future of financial well-being and security,” said Workplace President Investing Fidelity Investments. in the statement.
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Earlier this year, Northwestern Mutual said Americans believe $1.46 million is the amount of money they should have to retire “comfortably.”
A person puts money in a jar for retirement savings. (iStock/iStock)
About 57% of working Americans reported that they thought they were on the back foot when it came to work spend money for retirement, a separate Bankrate survey released in late September found. On the other hand, 15% said they were “much” or “a little ahead of where you should be.”
Another 22% believed they were “correct,” according to Bankrate.
