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Here’s How Much the Average American Has in These 3 Retirement Accounts (How Do You Compare?)

Are you saving enough? Compare your accounts to the U.S. average.

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Updated Oct. 16, 2024
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Retirement savings continue to grow for many Americans, with nearly 80% of workers receiving an employer contribution to their retirement accounts in the second quarter of 2024, according to Fidelity. 

This marks a slight increase from Q1, reflecting a positive trend for the third consecutive quarter, though growth has slowed slightly compared to earlier in the year.

We explore the three most common types of retirement accounts — IRAs, 401(k)s, and 403(b)s — and give you a sense of how the average balance in each stacks up as of Q2 2024. 

With this information, you can see how your retirement savings compare to national averages and consider what moves you might want to make to build wealth.

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IRA

Vitalii Vodolazskyi/Adobe savings in jar with ira label

Individual Retirement Accounts (IRAs) are a popular option for workers who want to supplement their employer-sponsored retirement plans or for self-employed workers. 

One key benefit of IRAs is the tax advantages they offer — either tax-deferred growth for traditional IRAs or tax-free withdrawals in retirement for Roth IRAs.

According to Fidelity, the average IRA balance in Q2 2024 was $129,200. That’s a 1% increase from the first quarter of the year. Notably, this is also the highest level of IRA contributions seen in the past five years.

Ten years ago, the average IRA balance was around $77,520 (40% less than in Q2 2024), showing steady growth over the decade. As more Americans take advantage of IRAs, these accounts continue to be a cornerstone of retirement planning for many.

401(k)

Tada Images/Adobe 401(K) Plans on IRS mobile website

A 401(k) is one of the most common types of retirement accounts, particularly among employees who work for private companies. 

One of the main perks of a 401(k) is the opportunity for employer matching contributions, which can significantly boost your retirement savings over time. 

Contributions are typically made with pre-tax dollars, allowing the account to grow tax-deferred until retirement.

According to Fidelity, the average 401(k) balance in Q2 2024 was $127,100. This is a modest 1% increase from Q1.

A decade ago, the average 401(k) balance was around $77,531 (39% less than in Q2 2024), highlighting the significant growth over time. With regular contributions and employer matches, many workers are able to build a substantial nest egg using their 401(k).

403(b)

Inna/Adobe 403(b) plan

For those working in the nonprofit and public sectors, 403(b) plans serve a similar role to 401(k)s. These tax-sheltered annuities (TSAs) allow workers in schools, hospitals, and other nonprofit organizations to save for retirement while receiving tax benefits. 

Like a 401(k), contributions to a 403(b) are typically made with pre-tax dollars, and some employers may offer matching contributions.

According to Fidelity, the average 403(b) balance reached $114,700 in Q2 2024, a slight 2% increase from Q1.

A decade ago, the average 403(b) balance was about $49321 (57% less than in Q2 2024), reflecting strong growth over the years. 

If you have a 403(b), making consistent contributions and maximizing any employer match can help you boost your savings and plan for a comfortable retirement.

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Total retirement assets surpass $40 trillion

sorrapongs/Adobe savings in jar with retirement label

The growth in individual retirement accounts reflects a larger trend: total U.S. retirement assets surpassed $40 trillion in Q2 2024, a 1.3% increase since March as reported by the Investment Company Institute (ICI). 

This enormous figure includes IRAs, 401(k)s, 403(b)s, and other retirement plans. Of that $40 trillion, IRAs totaled $14.5 trillion, while 401(k) accounts made up $8 trillion, and 403(b) accounts made up 1.3 trillion.

These numbers demonstrate the importance of retirement savings across the board and highlight the significant role that employer-sponsored and individual accounts play in helping Americans prepare for retirement. 

Whether you're just starting to invest or already have a plan in place, understanding the bigger picture may help you avoid wasting money and stay focused on growing your nest egg.

American retirement accounts are at record highs

guy2men/Adobe pension retirement concept

As of Q2 2024, American retirement account balances are nearing record highs, marking the third consecutive quarter of growth. 

Experts believe this trend will particularly benefit Gen X retirees, who are approaching retirement age and stand to make the most of these higher balances.

In fact, Fidelity reported that Gen X savers are seeing gains across all retirement accounts. Total IRA contributions increased by 30% over the last year, and current contributions are the highest they’ve been in the last five years.

Strong market performance, combined with increased contributions, has helped push retirement savings to new levels. 

For those who are wondering where they stand, it’s a good idea to check up on your retirement readiness and make any necessary adjustments to ensure you’re on track for a secure future.

Bottom line

Rawpixel.com/Adobe senior couple reviewing retirement plan together

Retirement accounts in the U.S. are seeing steady growth, with average balances for IRAs, 401(k)s, and 403(b)s all increasing in Q2 2024. 

Whether you start investing in your future as soon as possible or you’re already nearing retirement, it’s important to understand how your savings compare to these averages so you can plan effectively.

So, how does your retirement plan measure up? By staying informed about national trends and making strategic adjustments, you can better prepare for a financially secure retirement.

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