Young savers have done especially well. Gen Z saw a 66% increase in average 401(k) balances compared to a year ago, while millennials saw a 24.5% increase. Average Gen X balances were up 14.5%, and baby boomers saw an average increase of 6.3% compared to a year ago.
I’ll be curious to see what these numbers look like once student loan repayments start back up in October. I know I’m personally going to have to cut back my 401(k) contributions - which I increased during the payment pause over the last few years - in order to resume my payments, even with an IDR plan.
It’s not just boomers.
Source from Fidelity (PDF)
I’ll be curious to see what these numbers look like once student loan repayments start back up in October. I know I’m personally going to have to cut back my 401(k) contributions - which I increased during the payment pause over the last few years - in order to resume my payments, even with an IDR plan.
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Gen Y (millenials) saw the second largest increase. Balances for millenials and Gen Z are much lower due to other expenses like student loans.
Interesting, is Gen Z the first generation to have student loans?