Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.

Photo Illustration of a young woman
Money; Getty Images

Millennials and Gen Z are getting serious about saving for retirement — and not just with their 401(k) plans.

New data released by Fidelity shows that the number of IRA accounts among Gen Z investors rose 83% between the third quarter of last year and the third quarter of 2022. The number of millennial IRA accounts rose 25%, while the number of IRA accounts among investors of all ages rose 11%.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Make sure your hard-earned money is protected with a Gold IRA
Gold IRAs help you protect your investments by providing the asset diversification and stability you need. Click on your state to get started.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Start Investing Today

An IRA, or individual retirement account, is a tax-advantaged way to save money for retirement. Many people use them in addition to an employer-sponsored retirement plan like a 401(k) or 403(b). With a traditional IRA, you invest pre-tax money that grows now, and your tax bill comes when you withdraw the funds in retirement. With a Roth IRA, you pay taxes upfront and your investments grow tax-free.

The growth in new IRA accounts over the past year happened despite the fact that average IRA balances decreased nearly 25% to $101,900, Fidelity found. Those losses aren't too surprising given how stocks have been performing: The S&P 500 index is down more 17.5% so far this year.

Savings rates for 401(k)s among all age groups held steady over the last year, and actually ticked up (from 10% to 10.3%) for members of Gen Z. Average 401(k) balances rose by 1.2% for Gen Z investors, too.

The data signals that younger generations are doing exactly what experts recommend by continuing to invest despite a challenging market.

“Retirement savers have wisely chosen to avoid the drama,” Kevin Barry, president of Workplace Investing at Fidelity Investments, said in a news release, referring to the big swings in the stock market over the past year.

“This is important,” he added, “because one of the most essential aspects of a sound retirement savings strategy is contributing enough consistently — in up markets, down markets, and sideways markets — to help reach your goals.”

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
This IRA is as good as gold!
Unlike traditional retirement accounts, Gold IRAs are backed with precious metals. Sound good? Click below now to learn more.
Start Investing in Gold

More from Money:

Why You Should Open an IRA in Addition to Your Workplace 401(k)

It’s Getting Even Harder to Save for Retirement. Here’s What You Can Do

Why It's So Important to Keep Investing When Stocks Are Down