Gen Z workers who are saving for retirement saw their 401(k)s grow faster than millennials’ did last quarter, while Gen X topped baby boomers on another milestone, according to data from Fidelity.
In an analysis of its 23.3 million 401(k) participants at the end of the first quarter, Fidelity said Thursday that the average balance for Gen Z increased 15% from the fourth quarter to $11,300, compared to an 11% increase to $59,800 for millennials.
Across all generations, the average balance rose 6% to $125,900. That suggests Gen X’s average of balance of $178,500 and boomers’ $241,200 didn’t grow as fast as those of the younger cohorts.
Given that younger workers tend to invest more aggressively while older workers closer to retirement get more conservative, such differences between generations shouldn’t be surprising.
But typical generational investing profiles could shift as separate surveys have shown that younger Americans are especially eager to retire early, with most millennials aiming for a nest egg of $1 million-$2 million and Gen Zers shooting for $500,000-$1 million.
“We are encouraged to see account balances increase, providing solid proof that retirement savers are remaining invested and continuing to make steady contributions—while seeing the financial benefits as a result,” Sharon Brovelli, president of Workplace Investing at Fidelity Investments, said in the report. “With continued participation across generations and income levels, retirement savers will continue to build better financial futures, which is essential to the financial health of so many Americans and our economy.”
Fidelity data also showed Gen X has reached a key milestone as retirement approaches for that generation while more boomers transition to their golden years.
Among long-term savers who have maintained the same 401(k) accounts for at least 15 years, the average balance for Gen X ($543,400) surpassed the average for boomers ($543,200) for the first time ever.
That marks a major tipping point as it represents Gen Xers getting ready to retire soon and saving more in contrast with boomers who are already spending down their savings after leaving the workforce.
But again, typical saving patterns may not apply to the current batch of retirees, as many boomers look to “unretirement plans” to stay active and avoid depression, working well into their 60s and even 70s.
Meanwhile, Fidelity said there were 485,000 401(k)-created millionaires in the first quarter, up 15% from the prior quarter and 43% from a year ago.
That’s despite the topsy-turvy start to the year that financial markets saw as stocks and bonds sold off amid growing doubts the Federal Reserve would start cutting rates soon. To be sure, Fidelity’s 401(k) millionaires have been in it for the long haul, saving for an average of 26 years with an average contribution rate of 17%.
The average balance was $1.58 million, up from $1.55 million in the fourth quarter, a Fidelity spokesperson told CNN.
FAQs
Baby Boomers—born 1946 to 1964. Generation X—born 1965 to 1980. Millennials—born 1981 to 2000. Generation Z—born 2001 to 2020.
What is the average 401k balance at Fidelity? ›
Among the millions of retirement savers who hold accounts at Fidelity, the median 401(k) balance was $28,900 as of the first quarter of 2024, according to data the brokerage provided. That number may skew a little low, since many investors have multiple, small accounts from past employers.
What is the 401k balance for Gen X? ›
The median 401(k) account balance for Gen Xers, defined as people born between 1965 and 1980, is $54,500 as of the first quarter of 2024, according to data shared with CNBC Make It from Fidelity Investments, America's largest 401(k) provider. However, that's a long way from the generation's retirement savings goals.
What are the 401k milestones by age? ›
To help you stay on track, we suggest these age-based milestones: Aim to save at least 1x your income by age 30, 3x by 40, 6x by 50, and 8x by 60. Your personal savings goal may be different based on various factors including 2 key ones described below.
What is Gen X known for? ›
Gen Xers are typically described as resourceful, independent, and good at maintaining work-life balance. They were the first generation to grow up with personal computers. Gen Xers tend to have liberal views on social issues. They are more ethnically diverse than boomers.
Why are Millennials aging slower? ›
“I think it's just that Millennials happen to look good because of the way that Millennials have adopted injectables,” Belkin explained. Injectable treatments continue to rise in popularity as part of antiaging routines among all age demographics — and Millennials are leading in year-over-year growth.
Is Fidelity a good for 401 K? ›
If Fidelity's 401(k) fees do not go past the industry average of 2%, the plan should not differ much from other providers and could still be worth having. But whether it's worth it or not ultimately depends on the investor's time horizon, investment goals, risk tolerance and financial circ*mstances.
What should my Fidelity 401k target by age? ›
One simple way of estimating and monitoring your retirement savings goal is with our age-based savings factors. These are savings milestones expressed as multiples of your current income. Based on our analysis, we suggest aiming to save 1X your current income by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67.
How much do millennials have in their 401k? ›
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| <25 | $7,351 | $2,816 |
| 25-34 | $37,557 | $14,933 |
| 35-44 | $91,281 | $35,537 |
| 45-54 | $168,646 | $60,763 |
2 more rowsJun 24, 2024
As of June, there were roughly 497,000 so-called retirement-created millionaires in the U.S., according to the wealth management firm, which analyzed balances across 26,000 of its customers' accounts. Nearly 399,000 Americans also have a least $1 million in an individual retirement account.
The median retirement savings of baby boomers is $202,000. Forty-three percent of 55- to 64-year-olds had no retirement savings at all in 2022, according to the Federal Reserve Board.
What is the average 401k balance for a 70 year old? ›
Average 401(k) balance for 70s – $426,054; median – $104,105
The average age to retire is 65 for men and 63 for women, so it's not surprising to see the average and median 401(k) balance figures start to decline in people's 70s.
Can I retire at 62 with $400,000 in 401k? ›
You can retire a little early on $400,000, but it won't be easy. If you have the option of working and saving for a few more years, it will give you a significantly more comfortable retirement.
How much does a married couple need to retire at 65? ›
It's recommended that most couples save at least seven to eight times their combined annual income to retire comfortably.
At what age should you have 100k in your 401k? ›
“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.
What are the seven different generations? ›
Generation Names
- The Greatest Generation – born 1901-1927. ...
- The Silent Generation – born 1928-1945. ...
- The Baby Boomer Generation – born 1946-1964. ...
- Generation X – born 1965-1980. ...
- Millennials – born 1981-1996. ...
- Generation Z – born 1996-2012. ...
- Gen Alpha – born 2013 – 2025.
We're talking about Generation Alpha, the children of Generation Y, and often the younger siblings of Generation Z. Simply put, Generation Alpha are defined as those born from 2010-2024. More than 2.8 million are born globally every week.
What age is Gen Alpha? ›
Kids aged nine- through twelve-years old — the tweens of Generation Alpha (the generation born between 2010 and 2024) — are consuming, and even creating, content more appropriate for sixteen- to eighteen-year-olds, and partaking in trends that are dangerous for them long-term.
Is there a silent generation? ›
The Silent generation describes adults born from 1928 through 1945. Children of the Great Depression and World War II, their “Silent” label refers to their conformist and civic instincts. It also makes for a nice contrast with the noisy ways of the anti-establishment Boomers.
