People of all ages -- even young people -- are saving more for retirement by making bigger contributions than ever to Individual Retirement Accounts, a
Average IRA contributions for tax year 2013 increased 5.7% over the previous year and reached
Overall, average IRA contributions for investors in their 20s, 30s and 40s are up 3.9%, 6.7% and 6.2%, respectively.
To reach these conclusions, Fidelity analyzed the responses of 2,027 adults 18 and older who participated in a national survey in November. Saving more, paying off debt and spending less were the top three
This survey indicates people are taking their resolutions seriously, he says.
"The overarching reality is that more Americans understand that saving for retirement is their own responsibility," he says.
Despite this increase in how much people are saving, Hevert says many face the challenge of prioritizing more immediate needs and wants. Things such as purchasing a home, saving for college and starting a family can impede retirement savings.
But, he says, IRAs are desirable investments because of the ease of saving with automatic contributions and tax benefits.
"The other behavioral economic and emotional challenge is that people like instant gratification, and retirement is far away," Hevert says. "You've got people trying to balance their priorities, and that's a challenge."
Another study, by
Most Popular Stories
- Paniagua Wins Grand Prize in Young Artists Program
- Cable TV Not Going Away, Says Cable TV
- Yaris Adds French Flair for US Market
- German Intelligence Blames Ukraine Rebels for MH17
- Sub Hunt Brings Cold War Chill Back to Baltic
- 'Fury' Blows 'Gone Girl' Out of the Box Office
- Turkey to Help Kurds Reach Fight in Kobani
- IBM to Pay Big to Unload Chip Division
- ISIS Seeks to Expand Terror War
- Perez Leads Push for Obama's Job Proposals