Saving more, paying off debt and spending less were the top three New Year financial resolutions cited in a recent Fidelity studyii and our IRA analysis indicates that Americans are taking those financial resolutions seriously, said
The findings from Fidelity, the No. 1 provider of IRAs to investorsiii , shows investors 50 years of age and over continue to save the most in Traditional and Roth IRAs. Younger investors, those in their 20s, 30s and 40s, are adopting strong savings behaviors and have made strong increases with overall average contributions 3.9 percent, 6.7 percent and 6.2 percent, respectively from 2012 tax year to 2013 tax year.
Additionally, average contributions to Roth IRAs continue to outpace average Traditional IRA contributions on both ends of the age spectrum. Younger investors, who are more likely to be eligible to contribute directly to a Roth IRA, can take advantage of tax-free growth potential and withdrawals, while older investors utilize the savings vehicle when they are no longer able to contribute to a Traditional IRA as a result of reaching age 70 ½.
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