Average 401(k) savings rates remained steady at 14.1%, driven by employee and employer contributions of 9.4% and 4.7% on average respectively. Fidelity noted this is close to its recommended annual savings rate of 15%.

Nearly 40% of savers increased their contribution rate last year. The average increase was 2.9%. Nearly 90% of employees received an employer match, said Fidelity.

Related: 401(k) account balances increased 16% in 2024, led by millennials: Bank of America

The report also found that both long-term Gen X 401(k) savers and Gen X IRA savers had positive gains over the course of the year in both average balances and contributions. Fifteen-year Gen X savers saw an 18% increase in their 401(k) balances from an average of $508,000 to $589,400 from a year ago.

“As we have for several quarters now, we observed upward savings trends in Q4,” said Roger Stiles, head of Fidelity Wealth. “This is encouraging news and is particularly important for many Gen X savers, who are able to make catch-up contributions. This is an important consideration as the April tax deadline approaches where investors may be able to contribute to an IRA for potential tax deductions for 2024.”

The average balance for Gen Z individuals who have been saving in their 401(k) for 5 years grew to $52,900 – an increase of 66% over the past year, said Fidelity.

The analysis also highlights an evolving shift in the perception of retirement among Americans. Fidelity’s research found that 63% of employers report a workforce with at least 30% of employees over the age of 50. Meanwhile 41% of retirees are working, have worked or are looking for work, and one-third of retirees said they work primarily for mental stimulation.