Average 401(k) account balance up 14% from last year, according to Fidelity

  • Retirement balances at highest levels in two years
  • 401(k) account balance up 14% from last year
  • Number of 401(k) millionaires increased by 20%
  • Gen X workers with 15 years of 401(k) investment have average balance of $501,000
  • Total 401(k) savings rate remained steady at 13.9%
  • 37% of workers increased their retirement-savings contribution rate in 2023
  • Number of Roth IRA accounts for Gen Z investors increased by 50% in Q4 2023

Retirement balances have reached their highest levels in nearly two years, with a significant increase in the number of 401(k) millionaires. According to Fidelity Investments, the average 401(k) account balance was up 14% from last year, reaching $118,600. Gen X workers who had invested in a 401(k) for 15 years straight had an average balance of $501,000. The total 401(k) savings rate remained steady at 13.9%, and 37% of workers increased their retirement-savings contribution rate in 2023. Additionally, the number of Roth IRA accounts for Gen Z investors increased by 50% in the fourth quarter of 2023.

Factuality Level: 3
Factuality Justification: The article provides factual information about retirement savings and investment trends based on data from Fidelity Investments. However, it lacks critical analysis and may present a biased view by focusing solely on positive aspects without discussing potential risks or downsides associated with retirement savings and investments.
Noise Level: 3
Noise Justification: The article provides relevant and specific information about retirement savings trends, including average balances, savings rates, and behaviors of different generations. It includes quotes from experts at Fidelity Investments to support the data presented. The article stays on topic and does not dive into unrelated territories. However, it lacks critical analysis or exploration of potential risks or downsides to the trends discussed, and it mainly reinforces the positive narrative around retirement savings.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on retirement-account balances and savings rates, which can have an impact on financial markets and companies in the retirement industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial performance of retirement accounts and savings rates, which are relevant to financial topics. However, there is no mention of any extreme events.
Public Companies: Fidelity Investments (N/A)
Key People: Sharon Brovelli (President of Workplace Investing at Fidelity Investments), Michael Shamrell (Vice President of Thought Leadership at Fidelity’s Workplace Investing Division)

Reported publicly: www.marketwatch.com