From Yahoo Finance: 2025-06-06 19:01:00

Fidelity’s latest retirement report reveals that most people are not maxing out their 401(k) or buying gold bars for fun. The average 401(k) balance is $249,300, IRA balance is $257,002, totaling $506,302. Boomers have the highest savings rate at 11.9% plus 5% from employers, but it’s still not enough for a comfortable retirement.

Gen Xers are facing a now-or-never moment with an average 401(k) balance of $192,300 and IRA balance of $103,952, totaling $296,252. Juggling college tuition, aging parents, and retirement dreams, the pressure is real for this generation.

Millennials are still catching up with an average 401(k) balance of $13,500, IRA balance of $6,672, totaling $20,172. Student debt, housing costs, and late career starts have hindered their progress, but contribution rates are climbing.

Gen Z may not have high balances yet, with an average 401(k) balance of $67,300, IRA balance of $25,109, totaling $92,409. However, they are investing in target date funds and showing a long-term saving mindset early on.

Fidelity recommends saving 15% of income annually, including employer match, to stay on track for retirement. It’s not about being perfect but being persistent in saving for the future. Staying with the same employer and plan for 15+ years tends to result in significantly higher balances due to stability and compound growth.



Read more at Yahoo Finance: Is Your Retirement Nest Egg Above Average? Here’s What People Have In Their 401(k) And IRA at Each Age