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Fidelity® Q2 Retirement Analysis: Three Quarters of Growth Push Retirement Balances to Third-Highest Average on Record

Release Date: 28 Aug 2024
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  • Gen X Savers See Gains Across All Retirement Accounts
  • Average Nonprofit Retirement Account Balances Have Tripled in Last 10 Years

BOSTON, August 28, 2024 – According to the Fidelity Investments®’ latest Q2 2024 retirement analysis, retirement savers experienced the third quarter in a row of growth – a continuation of the strong contribution levels and positive market conditions that have driven average account balances to record-high levels. Gen X[1], in particular, made strong gains with their retirement savings, with current IRA contributions the highest observed in the last five years.

“Retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter, when contribution levels and average account balances reached record highs,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “Through market ups and downs, we always stress the importance of making steady retirement contributions. This quarter, Americans leveraged positive market conditions to build upon their savings and further secure their financial futures.”

As one of the country’s leading workplace benefits providers[2] and America’s No. 1 IRA provider[3], Fidelity’s latest analysis of savings behaviors and account balances for more than 48 million IRA[4], 401(k)[5], and 403(b)[6] retirement accounts can be found here.

“At this moment, Gen X retirement savers are in a pivotal place in their financial journey,” says Roger Stiles, president of Fidelity Wealth. “Not only are they balancing significant financial responsibilities – many with children in college, caring for aging parents, and managing increasing health care costs – but with retirement around the corner, having the appropriate level of retirement income has become a top priority. We are so pleased to see the gains Gen X made this quarter as they continue to prepare for their future.”

This quarter’s retirement analysis also puts a spotlight on nonprofit retirement savers. The latest “Better Outcomes for Nonprofit Organizations,” a biannual study from Fidelity, reveals retirement readiness measures for nonprofit employees have steadily increased over the last ten years. In fact, average account balances have tripled in nonprofit plans over this timeframe for continuously active participants ($70k in 2014 vs. $249k in 2023).             

 

Additional details and insight on retirement trends and data can be found in Fidelity’s latest quarterly edition of “Building Financial Futures” as well as the Workplace Insights hub, which explores original research, data-driven insights, and the latest industry trends.

About Fidelity Investments

Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve.  Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $14.1 trillion, including discretionary assets of $5.5 trillion as of June 30, 2024, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 78 years, Fidelity employs more than 75,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

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.

Past performance is no guarantee of future results.

Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.

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900 Salem Street, Smithfield, RI 02917

Fidelity Distributors Company LLC,

900 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC,

245 Summer Street, Boston, MA 02110

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© 2024 FMR LLC. All rights reserved

[1] 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.

[2] Based on PLANSPONSOR Magazine's “2024 Recordkeeping Survey,” June 2024 and “Plan Administration Guide, Part 1” which offers insight into the provider marketplace for defined benefit (DB), stock plan and health savings account (HSA) administration, May 2018.

[3] Based on Cerulli Associates’ U.S. Retirement End-Investor 2024: Top-10 IRA Providers by AUA, 4Q 2021–4Q 2023.

[4] Fidelity business analysis of 15.8 million IRA accounts as of June 30, 2024. Considers only active participants with balance.

[5] Fidelity Investments Q2 2024 401(k) data based on 26,000 corporate defined contribution plans and 24 million accounts as of June 30, 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.

[6] Fidelity Investments Q2 2024 403(b) data based on analysis of 15.8 million IRA accounts as of June 30, 2024. Considers average balance across all active plans for 6.33 million unique individuals employed in tax-exempt market.

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