The findings come from Fidelity’s third quarter retirement analysis. The firm’s data suggests that 15.8% of Gen Z workers are participating in their 401(k) plan and have an average balance of $4,700. By comparison, just 11.4% of Millennials were invested in their 401(k) plan at the same age, and they had an average balance of $2,000.
“Over the past two years, we are seeing the next generation of investors rise up and get more engaged with their finances, leading to more than 4.7 million new retail accounts on Fidelity’s platform, and it’s encouraging to see so many young people planning for their future,” Kelly Lannan said, according to the report. Lannan is Vice President of Young Investors at Fidelity. “Gen Z and Millennials may get an undeserved rap that they are mainly ‘living in the now’ but we know from our Fidelity Spire app users that retirement is the number one long-term goal they are trying to reach.”