George Kamel, a financial expert at Ramsey Solutions, has become heavier for Americans working at past retirement ages and has been offering advice to investors.
According to new data from Fidelity Investments, 401(k) retirement account balances reached “second-highest average on record” in the final quarter of 2024.
In its newly released fourth-quarter retirement analyses, the financial services company found that the balance between that type of retirement plans averaged $131,700.
According to Fidelity, that figure marked a jump of 11% year-on-year.
A close-up of a 401(k) statement using a pie chart showing the asset allocation. For more information about my financial picture, please click on the link below. (istock / istock)
However, compared to the third quarter of 2024, the average balance of 401(k)S recorded a 0.5% decline, the analysis shows. The third quarter came when the 401(k) plan notched with a “highest average” of balances and an average of $132,300.
According to Fidelity, the percentage of 401(k) retirement plan holders who took 14.1% year-on-year.
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Similar to the 401(k)s, the average balances for the other two common retired vehicles (IRAS and 403(b)) saw a small 1% decrease from the third quarter, but showed a year-over-year increase.
Fidelity locked its average balance of 403(b) accounts at $117,800 in the fourth quarter, up 11% compared to a year ago.
Meanwhile, the IRA account had an average balance of $127,543. This is an 8% increase from the fourth quarter of 2023, according to the report.
Senior couples who help you organize your retirement plans using a laptop. (istock)
Fidelity's fourth quarter analysis included over 50 million retirement accounts.
Overall, the financial services company said in 2024 that people who made nest eggs “experienced a year of active growth.”
Fidelity also reported that retirement contribution rates rose at almost 40% of savings in the golden age. On average, the increase was 2.9%.
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“We observed a upward savings trend in the fourth quarter, as we have for some now. This is especially important for many Gen X Savers, who can encourage and make catch-up contributions.” “This is an important consideration as the April tax deadline approaches, where investors could potentially contribute to the IRA due to potential tax credits in 2024.”
According to the IRS, the deadline for individual tax returns is April 15th.
Fidelity also highlighted the retirement savings efforts of Generation X, born between 1965 and 1980 in his latest analysis.
When it comes to IRAS, Gen Xers helped to contribute an average of 16% year-on-year contribution, according to Financial Services Company.
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Meanwhile, Gen Xers, which regularly puts money in their 401(k) accounts for 15 years, has achieved an average account balance of $589,400.
People put money in a jar of retirement savings. (istock / istock)
A study released last year by Northwestern Mutual found that Americans think it's the amount they need to experience a comfortable retirement.
Transamerica Center for Retirement Studies reported in August 2024 that the median retirement age for middle-class retirees was 62 years old.
