Fidelity's analysis of savings behavior for the fourth quarter of 2022 found that account balances are up. Among the other findings:

Balances increased. The average IRA balance was $104,000 in the fourth quarter, a 2% increase from the previous quarter and 36% increase from a decade earlier. The average 401(k) balance increased to $103,900.
Gen Z 401(k) savers are continuing to increase their balances. Although balances are relatively smalleramong Gen Z savers, who are heavily invested in target date funds, the average account balance increased by 23% over the third quarter — the highest of any group.
The number of IRA accounts continues to increase. Across generations, Roth IRAs tend to be the retail retirement savings vehicle of choice, with 61.3% of all contributions going into a Roth in the fourth quarter.
Not-for-profit workers also have maintained strong savings rates. Since 2013, the average savings rate has increased to 11.4%, an improvement of 3.3%.
Total 401(k) savings rates hold steady. The total savings rate for the fourth quarter, which reflects a combination of employer and employee 401(k) contributions, held fairly steady at 13.7%.
Outstanding 401(k) loans and average loan amounts continue to trend downward. The percentage of participants with a loan outstanding remained at 16.7% for the fourth quarter, down from 17% a year earlier and 21% five years ago.

Related: Holding pattern: Employees don't expect to make any changes to their 401(k)s in 2023

"Year over year, the trends are consistent — if you start saving earlier and avoid reacting to market volatility, you will be better off in the long run," said Joanna Rotenberg, president of personal investing. "This analysis shows that younger generations are sticking to their plans and working on building good savings habits, from budgeting daily expenses and automatically increasing contributions to taking advantage of an employer match. This is especially important during periods of inflation when the money you're accumulating needs to go further.

Instant Insights /

Fidelity: 401(k) balances were down 23% in 2022, but now rebounding

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