Just saw Fidelity's latest numbers on 401(k) balances and it's pretty interesting. Turns out the average 401k balance hit $127,100 as of last June, which was up 13% from the year before. That's three quarters in a row of growth, mostly thanks to the stock market bouncing back after 2022 was absolutely brutal for retirement accounts.

The breakdown by generation is wild though. Boomers sitting at $242,200 while Gen Z is just starting out with around $12,000. Millennials in the middle at $62,000. Makes sense when you think about how long each group has been contributing, but still shows the huge gap between early savers and late starters.

What caught my eye is that the average 401k balance growth is tracking pretty close to how the S&P 500 performed, up about 18% over that same period. The savings rate hit 14.1% too, which is apparently a record and super close to that 15% recommendation everyone talks about.

The whole thing feels like a comeback story after 2022 wrecked everyone's retirement plans. Stocks and bonds both tanked that year, but looks like people kept contributing anyway and it's paying off now. Just goes to show that sticking with it through the rough patches actually works.