Gen X makes progress with retirement savings: Fidelity

By Housing News


Retirement

savers
experienced
their
third
consecutive
quarter
of
growth
in
Q2
2024,
with

Gen
X

savers
showing
strong
gains
in
individual
retirement
arrangements
(IRAs),
a
sign
of
progress
considering
that
cohort’s
prior
struggles
with
saving
for
life
after
work.

This
is

according
to
a
report

released
by


Fidelity
Investments
,
based
on
401(k)
and
403(b)
data
derived
from
26,100
corporate
defined
contribution
plans
and
roughly
32
million
total
participants
as
of
June
30,
2024.

“Average
account
balances
rose
for
the
third
straight
quarter
to
reach
the
third-highest
average
on
record,”
the
report
said.
“Average
401(k)
and
403(b)
balances
increased
13%
and
12%,
respectively,
since
Q2
of
last
year.
Total
savings
rates
remained
fairly
flat
from
last
quarter
but
are
still
up
slightly
from
a
year
ago.”

401(k)
balances
for
women
also
rose
13.2%
over
levels
from
Q2
2023,
compared
to
a
12.5%
increase
for
men
in
the
same
period.
Gen
Z
women
saw
a
stark
increase
of
51%
year
over
year.

Average
balances
are
naturally
higher
for
older
generations.
For

baby
boomers
,
the
average
retirement
savings
balance
stood
at
$242,000
in
Q2,
followed
by
Gen
X
($182,000),

millennials

($62,000)
and

Gen
Z

($12,000).

“Fidelity’s
analysis
indicates
that
Millennials
and
Gen
Z
workers
are
more
likely
to
have
all
their
savings
in
a
target
date
fund,
while
less
than
15%
of
Boomers
have
a
loan
outstanding,”
the
report
said.

Much
has
been
said
about
Gen
X’s
struggles
with
establishing
retirement
savings,
but
the
report
indicates
that
the
cohort
is
steadily
working
at
building
up
a
retirement
nest
egg.

“Gen
X
made
strong
gains
with
their
retirement
savings,”
the
report
said.
“Gen
X
had
a
30%
increase
in
total
IRA
contributions
over
the
last
year,
with
current
contributions
the
highest
they’ve
been
in
the
last
five
years.”

The
report
operates
off
of


Pew
Research
Center
’s
definitions
of
the
various
generations:
baby
boomers
are
those
born
between
1946-1964,
Gen
X
were
born
between
1965-1980,
Millennials
between
1981-1996
and
Gen
Z
between
1997-2012.

A

study
conducted
earlier
this
year

by

Allianz
Life

found
that
62%
of
Gen
Xers
“feel
confident
about
being
able
to
financially
support
all
the
things
they
want
to
do
in
life,”
compared
with
82%
of
baby
boomers
and
77%
of
millennials.
But
more
than
half
of
Gen
X
respondents
(55%)
also
said
they
“wish
that
they
would
have
saved
more
money
for
retirement,”
a
feeling
that
is
more
severe
among
Hispanic
(63%)
and
Black
(56%)
members
of
the
cohort.

But
despite
those
challenges,
and
perhaps
in
an
indication
of
forward
thinking,
the
generation
also
demonstrates
interest
now
about
finding
housing
that
is
suitable
for

aging
in
place
.

Gen
X
members
are
already

taking
proactive
steps

by
thinking
“about
where
they
will
live
in
their
70s,
80s
and
even
90s,”
according
to
reporting
earlier
this
year
by
the

New
York
Times

based
on 

2021
data

from
the


Harvard
University


Joint
Center
for
Housing
Studies
.

 

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