Investing.com -- Fidelity Investments’ Q4 2024 retirement analysis indicates a year of growth for retirement savers in 2024. Despite a slight dip in average balances from Q3, the 401(k) balance marked the second-highest average on record, showing an 11% increase since the beginning of 2024.

Sharon Brovelli, President of Workplace Investing at Fidelity Investments, highlighted that retirement savers saw several quarters of steady growth in 2024. The upward trend in account balances throughout the year led to a strong financial foundation for many individuals entering 2025.

The total average 401(k) savings rate remained consistent at 14.1% in this quarter, marking a slight increase from 13.9% a year ago. The savings rate, propelled by both employee and employer 401(k) contributions at 9.4% and 4.7% respectively, is close to Fidelity’s recommended savings rate of 15%.

Long-term savers, particularly Gen X and Gen Z, also experienced growth in their account balances in 2024. Gen X savers who have been saving for 15 years saw an 18% increase from the previous year, reaching an average balance of $589,400, up from $508,000. Gen Z savers, who have been saving for 5 years, saw their average balance grow to $52,900, marking a 66% increase over the past year.

In 2024, nearly 40% of retirement savers increased their contribution rate, with an average increase of 2.9%. Furthermore, nearly 90% of savers received a contribution from their employer.

Growth was also observed in Individual Retirement Accounts (IRAs) in 2024. Accounts increased by 13%, and total assets rose by 22.6% since Q4 2023. Gen X savers, in particular, saw an increase in their average IRA contribution by 16% year-over-year, and the total number of IRAs grew by 11% from Q4 2023.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.