US. Retirement savings hit record rates despite great resignation
Despite the ups and downs of the labor market, one thing has held steady: employees’ commitment to funding their retirement accounts.
Fidelity revealed record rates of retirement savings during 2021 in their latest trend report. Their data showed that the average 401(k) account balance was a record high of $130,700, and 40% of savers actually increased their account contributions last year.
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“Investors continued to stay focused on the key fundamentals of retirement savings,” Kevin Barry, president of workplace investing at Fidelity Investments, said in a release. “By making regular contributions to retirement accounts, not cashing out savings when they change jobs and taking advantage of their employer’s contributions, individuals were able to keep their savings on track as we head into 2022.”
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Prioritizing retirement is becoming increasingly important for younger savers in particular. Fidelity found that 53% of Gen Z employees increased their 401(k) contribution rate, and 15.8% of Gen Z workers are participating in their company’s 401(k) plan, whereas just 11.4% of millennials did so at their age. Gen Z are also benefiting from Roth IRAs, with participation in these plans increasing 146% in 2021, Fidelity found.
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