Unveiling the Typical IRA savings by Age Groups:
Lotsa folks prefer tuckin' away funds for retirement in a 401(k) or some work-related savings plan, if they got one availab'le. But an IRA ain't nothin' to sneeze at either. It's a fine alternative if you ain't got a work plan, and it gives you extra freedom to invest how you see fit. You can even roll over funds from past 401(k)s into an IRA, makin' it simpler to manage your money all in the same pot.
Each person's IRA balance varies, depending on their savings strategy, age, and retirement plans. If you're feelin' curious bout how you stack up to others of your same age, a recent Fidelity survey spilled the beans about the standard IRA balance for each generation.
Just how much does each generation hold in their IRA?
The Fidelity survey mainly focused on 401(k) balances by generation, though it did take note of each age group's typical IRA balance, as shown in the table:
| Generation (Birth Years) | Typical IRA Balance || --- | --- || Baby boomers (1946 to 1964) | $250,966 || Generation X (1965 to 1980) | $100,169 || Millennials (1981 to 1996) | $24,097 || Generation Z (1997 to 2012) | $6,479 |
As you can see, the results ain't overly shockin'. Baby boomers, a considerable chunk of whom have already hung up their work boots and entered retirement, have the highest balances, while the youngest generation -- Gen Z -- sports the smallest average balance.
Some of the difference in balance size hinges on the length of time each generation's spent in the workforce and their typical earnings. But investment earnings also play their part in this equation. The longer your dough remains invested in your IRA, the more valuable it turns out to be in the long run.
Baby boomers (1946 to 1964)
Now, don't let yourself get worked up if you ain't even close to the average for your generation. Each generation encompasses a broad array of ages, so if you're a young millennial, for instance, you might be leanin' toward the Gen Z average as opposed to the millennial average.
$250,966
It's equally essential to recognize that averages isn't always a reliable indicator of what the regular person owns when discussing finances. A single person with an atypically large balance can seriously skew things.
If you've got nothin' in your IRA and four people with similarly empty accounts, and one bloke with a million dollahs, you get an average of $200,000. Far from what the typical person in that data set has. Unfortunately, the Fidelity survey doesn't include details on median balances, which are usually considered a more accurate reflection of what an ordinary person has.
Generation X (1965 to 1980)
How to pump up your IRA balance
$100,169
If your IRA balance ain't cuttin' it for you, there are things you can do to bounce it back. First, pin down how much you hope to deposit throughout the year. Keep in mind that you can only park $7,000 here in 2025 if you're under 50 or $8,000 if you're 50 or older. Also, if you're usin' a Roth IRA, you gotta watch out for income limitations.
Next, you'll gotta figure out how much you can afford to stash away. Ideally, you'd be able to put aside a set amount each month that you can automatically transfer from a linked bank account. But you don't gotta save this way.
Millennials (1981 to 1996)
If you bagged a year-end bonus at the end of 2024 that you'd like to save, start with that buckaroo. And if you get a tax refund, you can pour that into your savings jar as well. Even if you ain't able to max out your IRA, that's okay. Anything you're able to save will help your retirement savings in the future.
$24,097
Take a gander at what you're investin' in, too. You want to keep your charges as low as feasible so you can hang on to more of your dough. Index funds are a dang fine way to achieve that.
$6,479
Always remember, you ain't rivalin' against no one. You're just aimin' to amass enough money to cover your retirement expenses. It's fine if you ain't got nothin' in your IRA if you choose to save for retirement in a different account. Just make sure you comprehend what you need and have a strategy to get yourself there.
Generation Z (1997 to 2012)
Understanding the average IRA balances by generation can motivate individuals to save more for retirement. For example, seeing that millennials average $24,097 in their IRAs might encourage a young millennial with a lower balance to increase their contributions.
If you're looking to boost your IRA balance, consider setting a yearly deposit goal and contributing from sources like tax refunds or year-end bonuses. Additionally, keeping investment costs low through index funds can help maximize your retirement savings.
