Here's the Average IRA Balance by Generation

Many workers opt to save for retirement in a 401(k) or other workplace plan if they have access to one. But an IRA has its place in your savings strategy too. It's a great alternative if you don't have access to a workplace plan, and it gives you greater freedom to invest how you want. You can also roll over money from past 401(k) accounts into an IRA to make it easier to manage your money all in one place.

Everyone's IRA balance will be different, depending on their savings strategy, age, and plans for retirement. But if you're curious how you stack up to others your age, a recent Fidelity survey revealed the average IRA balance for each generation.

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How much does each generation have saved in their IRA?

The Fidelity survey primarily focused on 401(k) balances by generation, though it also made a note of each age group's average IRA balance, which is listed in the table:

Data source: Fidelity.

What we see here isn't all that surprising. Baby boomers, many of whom have already finished their careers and entered retirement, have the largest balances, while the youngest generation -- Gen Z -- has the smallest average balance.

Part of the difference in balance size has to do with the amount of time each generation has spent in the workforce and their average income. But investment earnings also play a factor here. The longer your money remains invested in your IRA, the more it's worth over the long term.

That said, it's important not to panic if you're nowhere near the average for your generation. Each generation encompasses a wide range of ages, for one, so if you're a young millennial, for example, you might be closer to the Gen Z average than the millennial average.

It's also worth pointing out that averages aren't always the best indicators of what the typical person has when talking about finances. It only takes one person with an unusually high balance to skew things a lot.

If you have four people with nothing in their IRAs and one person with $1 million in theirs, that gives you an average of $200,000, which is nowhere close to what the typical person in that data set has. Unfortunately, the Fidelity survey doesn't include details on median balances, which are usually seen as more accurate representations of what an ordinary person has.

How to boost your IRA balance

If your IRA balance isn't where you want it to be, there are things you can do to work on it. First, decide how much you hope to contribute during the year. Keep in mind that you can only put $7,000 here in 2025 if you're under 50 or $8,000 if you're 50 or older. Also, if you're using a Roth IRA, there are income limits you have to watch for.

Next, you'll have to figure out how much you can afford to save. Ideally, you'd be able to set aside a specific amount each month that you can automatically transfer from a linked bank account. But you don't have to save this way.

If you got a year-end bonus at the end of 2024 you'd like to set aside, start with that amount. And if you get a tax refund, you can put that toward your savings as well. Even if you're not able to max out your IRA, that's OK. Anything you're able to set aside will help your retirement savings in the future.

Take a look at what you're investing in, too. You want to keep your fees as low as possible so you can hold on to more of your savings. Index funds are a great way to do that.

Remember, in the end, you're not competing against anyone. You're just trying to come up with enough money to cover your retirement costs. It's fine not to have anything in your IRA if you'd rather save for retirement in a different account. Just make sure you understand what you need and have a plan to get yourself there.

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