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Baby boomers have contributed the most to their 401(k) retirement accounts compared to other generations.
Baby Boomers contribute to 401(k)s at the highest rate, with savers in this generation contributing 11.9% of their income on average.
Gen X, Millennial, and Gen Z savers set aside 10.2%, 8.7%, and 7.2% of their income toward a 401(k), respectively.
While average IRA contributions held steady at $2,200 from the second quarter of 2024 to the same period in 2025, Baby Boomer and Gen X savers substantially increased their contributions by 37% and 25%, respectively.
It’s tempting to compare your retirement savings against others in your age or income group to see how you stack up and whether you’re on track to being able to retire comfortably—or even ahead of schedule. While it is useful to look at absolutes such as overall retirement account balances, if you have a substantial time until you transition away from work, you may also find it helpful to see how others around you allocate their regular income toward retirement.
Automating a regular contribution toward one or more retirement accounts can help to capitalize on compounding returns, to take advantage of a dollar-cost averaging approach to investing in the market, and to make the most of potential employer contribution matches, among other benefits. Of course, it’s also important to keep in mind the annual contribution limits set by the IRS as well—for 2025, these are $23,500 for most holders of 401(k) accounts and $7,000 for individual retirement accounts (IRAs).
Average 401(k) Contributions, Balance, and Employer Contribution by Generation
Average 401(k) Contribution
Average Employer Contribution
Average 401(k) Balance
Baby Boomers
11.9%
5.0%
$249,300
Gen X
10.2%
5.0%
$192,300
Millennials
8.7%
4.6%
$67,300
Gen Z
7.2%
3.7%
$13,500
According to Fidelity data representing nearly 25 million retirement plan participants, as of the end of 2024, the average employee 401(k) contribution across generations (Baby Boomers, Gen X, Millennials, and Gen Z) was high enough to earn all but the loftiest of employer matches.
Baby Boomers saved the largest percentage of their income at 11.9%. Gen X was the next-highest at 10.2%, followed by Millennials at 8.7% and Gen Z at 7.2%. Keep in mind that a relatively small number of particularly high or low contributions may influence the average one way or another.
The average employer 401(k) contribution for each of these generations was also fairly high, at 5.0% each for Baby Boomers and Gen X, followed by 4.6% for Millennials and 3.7% for Gen Z.
How does this translate to 401(k) balances? Unsurprisingly, the longer a generation has been in the workforce—and thus the more time it has had to contribute to a retirement account and benefit from compounding returns—the higher its average 401(k) balance. Baby Boomers top the list at $249,300, while Gen X aren’t too far behind at $192,300. Millennials are quite a bit lower at $67,300, and Gen Z, many of whom are just getting started on the path to retirement, have an average 401(k) balance of $13,500.
Retirement saving is seeing a boom, with nearly 40% of savers having increased their contribution rate in 2024, by an average of 2.9% overall.
What about contributions to non-401(k) accounts, though? Many savers choose Roth 401(k)s as opposed to traditional plans—about 12.2% of Baby Boomers contribute to a Roth 401(k), while 14.5% of Gen X, 18.3% of Millennial, and 18.2% of Gen Z retirement savers do.
IRAs are also a major target for retirement savers. According to Fidelity, which does not break down contributions to IRAs by generation, the average IRA contribution for the second quarter of 2025 was $2,200. This figure held steady from the same period in 2024, although the average IRA balance climbed to $131,400 by the middle of 2025 from $125,200 a year earlier. Notably, older savers have boosted their IRA contributions fairly significantly in recent quarters: Boomers boosted their IRA contributions by an average of 37% in the last year, while Gen X savers increased theirs by 25% over the same period.
All told, average IRA balances across generations tell a similar story to average 401(k) balances. As of the end of 2024, Boomers had $257,002 in their IRAs, while Gen X had $103,952. Millennials were far lower at $25,109 on average, while Gen Z had just $6,672 in their IRAs.
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