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Retirement savings nationwide continued to rebound during the fourth quarter of 2023 as balances hit their highest levels in almost two years, according to Fidelity Investments.
In addition to 2023 being a strong year for stock market performance, more than one-third of workers — 37% — boosted their retirement savings contribution rate during 2023, Fidelity says.
Following is a rundown of how much people had saved in different types of retirement accounts as the new year dawned.
Individual retirement accounts
Average balance as of the fourth quarter of 2023: $116,600
Past average balances:
- Previous quarter: $109,600
- One year ago: $104,000
After a miserable 2022, the stock market rebounded strongly in 2023. By the fourth quarter of last year, average account balances in individual retirement accounts (IRAs) had jumped from where they finished 2022.
The market is off to another strong start in 2024. Time will tell if stocks end the first quarter higher than they were in the first quarter of 2023.
401(k) plans
Average balance as of the fourth quarter of 2023: $118,600
Past average balances:
- Previous quarter: $107,700
- One year ago: $103,900
Workers who save for retirement in a 401(k) plan also saw their balances jump in the fourth quarter. They are now sitting on tidy gains compared to where they were at the end of 2022.
403(b) plans
Average balance as of the fourth quarter of 2023: $106,100
Past average balances:
- Previous quarter: $97,200
- One year ago: $92,700
A 403(b) plan is similar to a 401(k), but it typically is available to people who work in public schools or for charities. As you might expect, the trends in 403(b) plan balances over the past year are similar to those of 401(k) plans.
Increasing your retirement account balance
Building a large retirement nest egg does not involve magic. Instead, you must commit to the effort, then slug it out day by day and step by step.
Over time, the little seeds you plant can become towering money trees. But it only happens if you create a plan and stick to it.
If you need help, consider enlisting a financial advisor who is a fiduciary, meaning they are obligated to put your best interest before their own.
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