Data and insights | q4 2023
Retirement analysis
Fidelity’s quarterly analysis of savings behaviors and account balances for more than 45 million IRA, 401(k), and 403(b) retirement accounts.
According to the latest retirement data from Fidelity Investments® Q4 2023 retirement analysis, retirement savers ended 2023 on a positive note with improved market conditions and consistent contributions helping boost average account balances to their highest level in nearly two years. Additionally, more than a third (37%) of workers increased their retirement savings contribution rate in 2023.
Average retirement account balances
Positive gains for retirement savers
13.9%
total 401(k) savings rates
Total 401(k) savings rates–reflecting combined employee and employer 401(k) contributions–remained steady at 13.9%, consistent with Q2 and Q3 2023 and up slightly from a year ago (13.7%).
$501,000
average balance for 15-year savers
The average balance for Gen X⁴ workers in their 401(k) plan for 15 years straight topped half a million dollars ($501,000) at year end 2023, illustrating the benefits of consistent savings, contributing enough to receive the employer match and taking a long-term approach to retirement.
50%
accounts increase
Accounts increased 50% in Q4 2023 compared to Q4 2022, with average contributions increasing 1.1%. IRA accounts owned by female Gen Z-ers increased by 59% over the last year.
20%
increase in 401(k) millionaires
This quarter saw a 20% increase in 401(k) millionaires following Q3 2023, when the number of millionaires dropped as a result of market conditions. The number of millionaires in Q4 is also 11.5% higher than Q2 2023.
2023 year in review
In addition to fluctuating economic conditions, positive savings behaviors also play an important role in helping workers reach their retirement goals. At the end of 2023, 78% of 401(k) savers were contributing at rate high enough to secure the full matching contribution offered by their employer.
Workers who changed their asset allocation
In Q4, 5% of workers changed their asset allocation. Looking at all of 2023, 8.4% made adjustments.
Individuals who increased their contribution rate
In Q4, 10% of employees increased their contribution rate. For the full year, 37.2% made an increase.
Individuals who proactively increased their contribution rate (versus an auto increase)
In Q4, 48% of individuals proactively increased their contribution rate, rather than relying on auto increases. For the full year 2023, of the people that increased their contribution, 27% proactively increased their contribution rate.
“This past year ended on a high note for retirement savers. When it comes to matters like market stability and economic events, 2023 gave us the highs of the highs, and the lows of the lows, but encouragingly, many retirement savers took the long view and stayed the course through it all, which is the type of commitment that can lead to a secure financial future.”
Sharon Brovelli,
President of Workplace Investing at Fidelity Investments
The power of RMDs
With required minimum distributions (RMDs) kicking in around age 73, as a result of SECURE 2.0’s recent provisions, most pre-retirees and retirees under the age of 70 maintained a savings mindset and did not withdraw from their 401(k) plans.
94%
of retirees age 73+ made 401(k) withdrawals in 2023
20%
of retirees age 70 to 72 made 401(k) withdrawals in 2023
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* Unless otherwise noted, data within is based on Fidelity's analysis of savings behaviors and account balances for more than 45 million IRA, 401(k), and 403(b) retirement accounts.
¹ Fidelity Investments Q4 2023 401(k) data based on 23,500 corporate defined contribution plans and 22.7 million participants as of December 31, 2023. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are non-qualified defined contribution plans and plans for Fidelity’s own employees.
² Fidelity Investments Q4 403(b) data based on 10,116 Tax-exempt plans and 8.4 million plan participants as of December 31, 2023. Considers average balance across all active plans for 6.22 million unique individuals employed in tax-exempt market.
³ Fidelity business analysis of 15 million IRA accounts as of December 31, 2023. Considers only active participants with balance.
⁴ Generations as defined by Pew Research: Baby Boomers are individuals born between 1946-1964, Gen X are individuals born between 1965-1980, Millennials include individuals born between 1981-1996 and Gen Z includes individuals born between 1997-2012.
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