Retirement contributions increase by generation

Retirement saving contribution rates increased by generation, according to Fidelity Investments' Building Financial Futures second-quarter report. Generation Z, defined as those born between 1997 and 2012, had a combined employer and employee savings rate of 10% for their 401(k) plans and 7.6% for 403(b) participants. Baby boomers, born between 1946 and 1964, contributed 16.6% of their salaries to 401(k) plans and 11.3% to 403(b) plans.

In the most recent period, the overall contribution rate was 13.9%.

As of June 30, baby boomers had average account balances of $207,900 and $186,100 in their 401(k) and 403(b) plans, respectively. This was $4,900 for Gen Z's 401(k) and $3,500 for their 403(b) plan.

Overall, the average 401(k) retirement balance was $103,800, down from $121,700 on March 31 and $129,300 in June 2021. For 403(b) accounts, the average balance was $93,300 at the end of the second quarter vs. $107,600 three months ago and $113,300 a year ago.