According to the Fidelity Investments® latest Q4 2024 retirement analysis, retirement savers experienced a year of growth in 2024. While average balances across the board dipped slightly from Q3, the 401(k) balance ranks as the second-highest average on record and is an 11% increase from the start of 2024.
Average retirement account balances
A year in review for retirement savers
14.1%
total average 401(k) savings rates
Total average 401(k) savings rates remained steady this quarter at 14.1%, which is up slightly from a year ago (13.9%). Driven by employee and employer 401(k) contributions (9.4% and 4.7%, respectively), this savings rate continues to be very close to Fidelity's suggested savings rate of 15%.
18%
increase in account balance for 15-year savers
Long-term savers also saw a boost in account balances last year. Gen X⁴ 15-year savers saw an 18% increase from a year ago ($508,000 vs. $589,400), and the average balance for Gen Z individuals who have been saving in their 401(k) for 5 years grew to $52,900 – an increase of 66% over the past year.
40%
increase in contribution rate
Nearly 40% of retirement savers increased their contribution rate in 2024 – an average increase of 2.9%. Additionally, nearly 90% of savers overall received a contribution from their employer.
13%
increase in account growth
There was growth among IRAs in 2024, where accounts grew by 13% and total assets increased 22.6% since Q4 2023. Gen X, in particular, experienced growth, with the average IRA contribution for that generation increasing 16% year-over-year, and the total number of IRAs increasing 11% from Q4 2023.
“This year, retirement savers experienced several quarters in a row of upward growth, with account balances making significant gains over the course of 2024. 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.”
Sharon Brovelli,
President of Workplace Investing at Fidelity Investments
Spotlight: Retirement reimagined
Americans are shifting the way they approach retirement – an evolution Fidelity recently explored in two research papers. “Rethinking Retirement” looks at how an aging workforce is leading employers to reevaluate retirement transition strategies; “Is Retirement Retiring?” examines the shift in employees working past the age of 65 and how offering supportive benefits can be advantageous to employees and employers.
63%
of employers have a workforce with at least 30% age 50 and above
41%
of retirees are working, have worked, or are currently seeking work
33%
of retirees work for mental stimulation
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¹ Fidelity business analysis of 16.8 million IRA accounts as of December 31, 2024. Considers only active participants with balance.
² Fidelity Investments Q4 2024 401(k) data based on 26,700 corporate defined contribution plans and 24.5 million participants as of December 31, 2024. 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.
³ Fidelity Investments Q4 2024 403(b) data based on 10,800 Tax-exempt plans and 8.9 million plan participants as of December 31, 2024. Considers average balance across all active plans for 6.55 million unique individuals employed in tax-exempt market.
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.
Keep in mind that investing involves risk, including the risk of loss. The value of your investment will fluctuate over time, and you may gain or lose money.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
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