On Aug. 17, Fidelity Investments released a Q2 2023 retirement analysis showing quarterly growth for three straight quarters in retirement account balances. The analysis, which studied more than 45 million IRA, 401(k), and 403(b) retirement accounts, reported substantial growth in 401(k) balances, with a notable 66% increase among Gen Z workers compared to Q2 2022 and young investors also observed a 34.4% year-over-year surge in IRA accounts.

“We are pleased to see a third straight quarter of positive gains for retirement savers as the market continues to improve and both employees and employers commit to establishing a strong financial future,” said Kevin Barry, president of Workplace Investing at Fidelity Investments, according to the release. “As we begin to see improvements in market conditions, maintaining high contribution and savings rates is an essential component of improving one’s retirement readiness.” 

According to the analysis, in Q2 2023, the mean IRA balance surged to $113,800, marking a 5% climb from the preceding quarter, while the average 401(k) balance reached $112,400, indicating a 4% rise since Q1 2023. Notably, Gen Z, Millennial, and Gen X workers witnessed substantial double-digit increases in average 401(k) balances over Q2 2022: Gen Z experienced a 66% surge, Millennials increased by 24.5%, and Gen X savers showed a 14.5% increase. Balances for Boomers also exhibited growth, rising by 6.3% since Q2 2022.

The overall savings rate for the second quarter, which combines both employee and employer 401(k) contributions, stood at 13.9%, mirroring the rate observed in Q2 2022, per the analysis. The total count of IRA accounts grew to 14.3 million, marking an 11% increase compared to Q2 2022. Moreover, the average long-term balances for continuous savers spanning 5, 10, and 15 years witnessed substantial double-digit growth in the past year. While outstanding 401(k) loans saw a minor uptick, the number of individuals achieving retirement millionaire status surged during this quarter.