George Kamel, financial expert from Ramsey Solutions, between Americans working in retirement age and provides advice to investors.
The sales for retirement accounts 401 (K) reached the “second highest average ever recorded” in the last quarter of 2024, according to new data from Fidelity Investments.
The financial service company has discovered in its new retirement analysis in the fourth quarter which balances that this type of retirement plan was on average $ 131,700.
This figure marked an 11% leap from one year to the next, according to Fidelity.
Close -up of a 401 declaration (K) with a pie graph indicating an asset allocation. To see more of my financial images click on the link below: (Istock / Istock)
Compared to the third quarter of 2024, however, the average sales for 401 (K) s displayed a drop of 0.5%, showed the analysis. The third quarter was when 401 (K) plans marked their “highest average ever recorded” for sales, with an average of $ 132,300.
According to Fidelity, the rate to which 401 (K) holders of pension plans increased money to 14.1% in the fourth quarter, according to Fidelity.
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Similar to 401 (k) s, the average sales for two other popular retirement vehicles – IRAS and 403 (B) S – experienced low drops of 1% compared to the third quarter, but have shown increases from year to year.
Fidelity set the average balance of 403 (b) accounts at $ 117,800 in the fourth quarter, up 11% compared to a year ago.
Meanwhile, the accounts will have average balances of $ 127,543. This represents an increase of 8% compared to the fourth quarter of 2023, according to the report.
Senior couple using a laptop to help organize their retirement plans. (istock)
The analysis of the fourth quarter of Fidelity included more than 50 million retirement accounts.
Overall, the financial services company said that people building nest eggs “have experienced a year of positive growth” in 2024.
Retirement contribution rates increased for almost 40% of those who save for their gold years, Fidelity also reported. On average, the increase was 2.9%.
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“As we have done for several quarters now, we have observed upward savings trends in the fourth quarter. This is encouraging news and is particularly important for many savers of generation X, who are able to make catch -up,” said the head of wealth of Fidelity, Roger Stiles in a statement. “This is an important consideration with the approach of the tax deadline in April where investors can contribute to an IRA for potential tax deductions for 2024.”
The deadline for filing the individual income tax return is April 15, according to IRS.
Fidelity also highlighted the retirement economics of generation X – people born between 1965 and 1980 – in his latest analysis.
With regard to IRA, the Gen Xers has increased its average contributions by 16% in annual shift, according to the financial services company.
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Meanwhile, the Gen Xers who put money in 401 (K) regular accounts over 15 years have reached average account sales of $ 589,400, a leap of 18% compared to the same period last year, out of loyalty.
A person puts money in a retirement savings pot. (Istock / Istock)
Americans think that $ 1.46 million is the amount of money to experience a comfortable retirement, according to a study published by Northwestern Mutual last year.
The Transamerica retirement studies center found in a August 2024 report that the median retirement age for middle -class retirees was 62.
