New Fidelity Data Shows Americans Are Saving at Record Levels  In Their 401(k)

Americans might be hitting the brakes when it comes to restaurants and vacations — but when it comes to their 401(k)s, they’re stepping on the gas. According to new data from Fidelity, the country’s largest 401(k) provider, people increased the percentage of income they funneled into retirement savings in Q1.

• The average 401(k) savings rate hit 14.3% of their paychecks — a record high and up from 13.5% in 2020.
• That’s just shy of the 15% contribution many financial planners recommend to save for retirement over a “four-decade career.”

Generational wealth: While the strides towards 15% are encouraging, they’re not consistent across generational cohorts. For example, the older Baby Boomers and Gen X group are saving 17.2% and 15.4%, respectively, likely making up for missed contributions in their prime earning years. All the while, prime-age Millennials are saving a less impressive 13.5%. Still, better something than nothing…