“Barron’s Roundtable” discusses reports that members of Generation Z are actively looking to retire.
New data from Fidelity Investments shows that Gen
The financial services firm reported Thursday in its third-quarter retirement analysis that total contributions increased by a whopping 35% compared to the same period in 2023, as Gen did.
Generation X was thought to be people born between 1965 and 1980.
Serious mature couple calculating bills to pay, checking household finances, midlife family management, budgeting, planning expenses, gray-haired man and woman reading bank loan documents at home (Istock / iStock)
Fidelity says more Gen Xers put money into IRA accounts in the third quarter compared to a year ago. The increase was 23%.
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The financial services company said in a press release that Gen
For Gen Up to $586,100, according to Fidelity data.
“We are pleased to see Gen X retirement savers continue to earn solid returns on their retirement savings,” Fidelity Wealth President Roger Stiles said in a statement. “The oldest members of this generation will be retiring in the next five to 10 years, making it the perfect time to focus on securing a nest egg that will allow them to live more comfortably in retirement.”
This comes as Fidelity found that those saving for their golden years collectively “experienced an additional quarter of growth thanks to continued high contribution levels and favorable market conditions.” That’s what I received. That analysis included more than 49 million retirement accounts.
Two types of retirement plans, 401(k) and 403(b), posted “record-high averages” in balances in the third quarter, the financial services company said.
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Fidelity said 401(k) account balances averaged $132,300 in the third quarter, up 4% from the previous quarter and 23% from a year ago.
Some young Americans choose to “microretire” early in their careers, rather than saving all their money for a future permanent retirement. (Getty Images/Getty Images)
The average balance in 403(b) plans increased as well, reaching $119,300.
Meanwhile, the average IRA balance for the quarter was $129,200.
Fidelity’s Retirement Analysis reports that the overall average savings rate was “flat” in the third quarter. It fell just short of the company’s recommended 15%, at 14.1%.
“While it’s important to make consistent retirement contributions across market cycles, it’s important to maintain this commitment over the long term no matter what happens in the market,” said Fidelity Investments’ President of Workplace Investments. “This will prepare Americans for a future of economic health and security.” In a statement.
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Northwestern Mutual said earlier this year that Americans believe they need $1.46 million to retire “comfortably.”
A person puts money into a retirement piggy bank. (license/image)
Another Bankrate survey released in late September reported that about 57% of working Americans believe they are at a disadvantage when it comes to dipping into their retirement funds. However, 15% said they were “significantly” or “slightly ahead of where they should be” in that regard.
An additional 22% believe they are “on the right track,” according to Bankrate.
