Millennials are saving more

May 30, 2018 0 By incomem

Fidelity have released some interesting findings for the first quarter of 2018 regarding 401(k) balances. I like covering Australian finance and investing statistics here on Income Master but I couldn’t ignore how our friends in the United States are doing.

Millennials are saving more

As you’ll see in the chart above, there has been a considerable improvement in 401(k) balances just in the short space of time between 2016 and 2018. Good work everyone! Fidelity also found that ladies are contributing to an IRA in bigger numbers now with a 23% increase in the past year.

Sadly, there is still a large number of Americans who don’t hold a 401(k) account at all and have practically nothing saved for retirement. Fidelity found that millennials are saving more by taking advantage of some type of defined-contribution plan. The amount of Americans being proactive and doing this has risen a whopping 75% in the last 10 years. As we have talked about many times before, it’s essential to be making regular personal contributions to truly make compound interest work for you.

The average account balance has increased from $87,600 in Q1 2016 to $102,900 in Q1 2018 which is a decent climb.