If building wealth is an obstacle course for Gen Z and millennials, they’re willing to jump all the hurdles. The youngest generations contributed more to their 401(k)s last quarter than anyone else at a time when the promise of retirement has never felt less hollow.
That’s according to Bank of America’s Q2 2023 Participant Pulse report, released Tuesday, which found that Americans’ average 401(k) balances have increased by $7,250—nearly 10%—since the end of 2022. This quarter, many more of the 4 million workers BofA analyzed increased their contribution rate than decreased it. That push was led by the youngest workers, who contributed more than any other age group: 19.3% of Gen Zers upped their contributions, as did 11% of millennials, compared to 9.7% of Gen Xers and just 7.8% of baby boomers.
