Even with a rocky start to the year in the market, workers in their 40s appear to be sticking with their retirement contributions.
That’s based on Fidelity’s latest report, which analyzed data from more than 24 million of its 401(k) accounts through March 31. Here’s how much people in their 40s have in their 401(k) accounts, on average:
For workers in their 40s, that amounts to a decline of roughly 3% in the first quarter, in line with a 3% drop across all age groups. By comparison, the S&P 500 index declined 4.6% over the same period. The average 401(k) balance for all age groups fell to $127,100 as of March 31.
Despite market losses, workers in their 40s are keeping up strong 401(k) contributions. While Fidelity doesn’t publish contribution rates by age, generational data suggests many are saving at or near the recommended 15% rate.
Gen X, which includes people in their late 40s, is contributing an average of 15.4%, while millennials, who include workers in their early 40s, are saving 13.5% on average. In contrast, Gen Z workers are saving 11.2%.
