Fidelity Finds Millennials Near $100,000 in Retirement Savings as Gen Z Lifts 401(k) Rates
Updated
Updated · Business Insider · Sep 4
Fidelity Finds Millennials Near $100,000 in Retirement Savings as Gen Z Lifts 401(k) Rates
1 articles · Updated · Business Insider · Sep 4
Summary
$94,300 is the average retirement-account balance for millennials in Fidelity’s second-quarter report, putting the cohort close to the $100,000 savings milestone; Gen Z averages $20,800.
4.8% and 4.1% are the average employer contribution rates for millennials and Gen Z, below the 5.1% seen for Gen X and baby boomers, suggesting younger workers may not be capturing full company matches.
80% of Gen Z savers hold all their retirement money in target-date funds, versus 46% of boomers, reflecting both default plan design and younger investors’ preference for hands-off allocation.
Gen Z is increasing savings rates most aggressively, a trend Fidelity said may be helped by SECURE 2.0 rules requiring many new 401(k) plans to auto-escalate contributions until they reach 10% to 15%.