About Fidelity

Positive Gains for Retirement Savers

Total 401(k) Savings Rates
Total average 401(k) savings rates reached a record high of 14.2%, driven by employee and employer 401(k) contributions that matched previous record levels (9.4% and 4.8%, respectively). This savings rate is the closest it has ever been to Fidelity's suggested savings rate of 15% (this includes employee and employer contributions).

Average Long-Term Balances
The average balance for 5, 10 and 15 year continuous savers increased this quarter, with 15-year savers seeing a 7% increase in their account balances, demonstrating the value of consistently contributing in the same plan for an extended period of time. Additionally, for the first time, the 15-year continuous balance for Gen X4 participants ($543,400) surpassed the 15-year continuous balance for Boomers4 ($543,200).

Gen Z4 Roth IRA accounts
The number of Gen Z Roth IRA accounts increased 71% in Q1 2024 compared to Q1 2023, with average contributions increasing by 11.1%. IRA accounts owned by female Gen Z-ers increased by 60% over the last year.

401(k) Loans
The percentage of workers with a loan outstanding remained at 17.8% this quarter, consistent with Q4 2023 levels, but higher than a year ago (16.7%).



Spotlight: Small Business Month

In honor of Small Business Month, we are highlighting the strong savings behaviors of our small business retirement savers – showing the value of having access to a retirement savings account. While research shows only 30% of small businesses offer a retirement savings benefit, Fidelity’s small business data – representing SEP and SIMPLE IRAs and Self-Employed 401(k)s – shows that when a small business employee is given the opportunity to save, they run with it.

$152K

Average Account Balance

8%

Average Contribution Rate

Compared to a 9.3% deferral rate for a traditional 401(k)

9.9 years

Average Tenure

Compared to 8.6 years for a traditional 401(k)


Additionally, Fidelity Advantage 401(k)SM – our simple, low-cost plan designed for employers offering a 401(k) for the first time – represents an emerging area of opportunity and is better helping to meet the needs of many small businesses. Fidelity has seen substantial growth since launching the offering in 2021.

+417.5%

Growth in total assets

Year-over-year 2022-2023

761

Small business enrolled since 2021

17K

Eligible employees

*Unless otherwise noted, data within is based on Fidelity's analysis of savings behaviors and account balances for more than 45 million IRA, 401(k), and 403(b) retirement accounts.
1Fidelity business analysis of 15.3 million IRA accounts as of March 31, 2024. Considers only active participants with balance.
2Fidelity Investments Q1 2024 401(k) data based on 25,800 corporate defined contribution plans and 23.9 million participants as of March 31, 2024. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are non-qualified defined contribution plans and plans for Fidelity’s own employees.
3Fidelity Investments Q1 2024 403(b) data based on 10,055 Tax-exempt plans and 8.6 million plan participants as of March 31, 2024. Considers average balance across all active plans for 6.33 million unique individuals employed in tax-exempt market.
4Generations as defined by Pew Research: Baby Boomers are individuals born between 1946 – 1964, Gen X are individuals born between 1965-1980, Millennials include individuals born between 1981 – 1996 and Gen Z includes individuals born between 1997 – 2012.