Retirement savers have experienced three straight quarters of growth in their accounts, according to a new release by Fidelity Investments.
The firm’s latest Q2 2024 retirement analysis cites strong contribution levels and positive market returns for the continued growth. According to the findings, as of Q2 2024, individual retirement accounts (IRAs) had an average account balance of $129,200, while 401(k)s had an average balance of $127,100 and 403(b)s had a median balance of $114,700. Each had a positive return, with IRAs increasing 14% since Q2 2023, 401(k)s at 13%, and 403(b)s at 12%.
The second quarter also saw all-time highs for retirement-created millionaires with increases of 2.5% for 401(k) millionaires and 6% for those who achieved millionaire status through their IRA, according to Fidelity.
“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.”
The findings reported increases for long-term savers, which Fidelity identifies as those having saved consistently for five, 10, and 15 years. In fact, 15-year Gen X savers continue to see their savings grow, with an average balance this quarter of $554,000, compared to $543,400 last quarter. Gen Xers also had a 30% increase in total IRA contributions over the last year, with current contributions the highest they’ve been in the past five years, reports Fidelity.
“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.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.