Finance
Gen X helps drives retirement savings balances to new record
Generation X has been boosting its efforts to build nest eggs for retirement, according to the newly-released data from Fidelity Investments.
The financial services company reported Thursday in its third-quarter retirement analysis that Gen Xers socking away money in individual retirement accounts (IRAs) upped their total contributions by a whopping 35% from the same period in 2023.
It considered Gen X to be people born in the years 1965 through 1980.
Compared to a year ago, more Gen Xers also put money into their IRA accounts in the third quarter, according to Fidelity. That jump was 23%.
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The financial services company said in a press release that Gen X made “impressive gains across all retirement accounts” including IRAs, 401(k)s and 403(b)s.
When it came to Gen Xers that have been playing the long-game and setting aside money in 401(k) plans on a regular basis for the past 15 years, there was a 6% quarter-over-quarter increase in their average account balance to $586,100, per Fidelity’s data.
“We are pleased to see Gen-X retirement savers continue to make solid gains with their retirement savings,” President of Fidelity Wealth Roger Stiles said in a statement. “The oldest members of this generation will be approaching retirement in the next five to ten years, making this the perfect time to focus on securing a nest egg that can help them live more comfortably throughout their retirement years.”
This comes as Fidelity found that people saving up for their golden years overall “experienced another quarter of growth thanks to continuing strong contribution levels, and positive market conditions.” Its analysis included over 49 million retirement accounts.
Two types of retirement plans – 401(k)s and 403(b)s – notched their “highest average on record” for balances in the third quarter, the financial services company said.
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For 401(k) accounts, balances averaged $132,300 in the third quarter, a quarter-over-quarter increase of 4% and a year-over-year increase of 23%, according to Fidelity.
Average balances in 403(b) plans notched similar increases, hitting $119,300.
Meanwhile, the average balance for IRAs came in at $129,200 for the quarter.
Fidelity’s retirement analysis reported the total average savings rate in the third quarter “held steady.” It pegged it at 14.1%, just shy of the 15% the company recommends.
“Consistent retirement contributions during various market cycles is important, but despite what happens in the market, maintaining this commitment in the long run is what will help set Americans up for a future of financial wellness and security,” Fidelity Investments President of Workplace Investing said in a statement.
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Earlier this year, Northwestern Mutual said Americans think $1.46 million is the amount of money they must have in order to “comfortably” retire.
About 57% of working Americans reported thinking they were on the backfoot when it came to socking away money for retirement, a separate Bankrate survey published in late September found. On the other hand, 15% expressed they were “significantly” or “slightly ahead of where you should be” for it.
Another 22% believed they were “right on track,” per Bankrate.
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SAN DIEGO, CALIFORNIA – OCTOBER 26: A woman pushes a stroller while walking along the La Jolla coastline at sunset on October, 2024 in San Diego, California. (Photo by Kevin Carter/Getty Images)Kevin Carter | Getty Images News | Getty Images
BEIJING — One Chinese baby products company announced Tuesday it is officially entering the United States, the world’s largest consumer market — regardless of the trade war.
Shanghai-based Bc Babycare expects its supply chain diversification and the U.S. market potential to more than offset the impact of ongoing U.S.-China trade tensions, according to Chi Yang, the company’s vice president of Europe and the Americas.
“Even [if] the political things are not steady … I’m very confident about our product for the moment,” he told CNBC, adding he anticipates “very fast” growth in the U.S. in coming years. That includes his bold predictions that Bc Babycare’s flagship baby carrier can become the best-seller on Amazon.com in half a year, and that U.S. sales can grow by 10-fold in a year.
The $159.99 carrier, eligible for a $40 discount, already has 4.7 stars on Amazon.com across more than 30 reviews. The device claims to reduce pressure on the parent’s body by up to 33%. A far cheaper version of the baby carrier is a top seller among travel products for pregnancy and childbirth on JD.com in China.
Bc Babycare already has the carrier stocked in its U.S. warehouses, and has a network of factories and raw materials suppliers in the Americas, Europe and Asia, Yang said. “The global supply chain is one of the things we keep on building in the past couple years.”
The Trump administration has sought to reduce U.S. reliance on China-made goods and to encourage the return of manufacturing jobs to the U.S. In a rapid escalation of tensions last month, the U.S. and China had added tariffs of more than 100% on each other’s goods. Last week, the two sides agreed to a 90-day pause for most of the new duties in order to discuss a trade deal.
Baby gear is particularly sensitive to tariffs since the majority of those sold in the U.S. are made in China, said U.S.-based Newell Brands, which owns stroller company Graco, on an April 30 earnings call. That’s according to a FactSet transcript.
The company said it raised baby gear prices by about 20% in the last few weeks, but had not incorporated the additional 125% tariffs announced in mid-April. Newell said on the call it had about three to four months of inventory in the U.S., and had paused additional orders from China.
The company did not respond to a request for comment about whether it had resumed orders from China and whether it planned more price increases.
U.S. office plans
Bc Babycare declined to share how much it planned to invest in the U.S. But Yang said the company plans to open an office in the country and hire about five to 10 locals.
The company initially plans to sell online, spend on marketing and eventually work with major retailers for offline store sales. Its partners for raw materials and research include three U.S. companies: Lyra, Dow and Eastman.
The Chinese company, which entered the baby products segment in 2014, in 2021 claimed a 700 million yuan ($97.09 million) funding round from investors including Sequoia Capital China.
Yang said the company scrutinizes the comments section on Chinese and U.S. e-commerce websites to improve its products. As a result, the U.S. version of the baby carrier is softer and larger than the Chinese version, he said.
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Bc Babycare’s U.S. market ambitions reflect how large U.S. and European multinationals not only face growing competition in China, but also in their home markets.
“After experiencing substantial growth due to the premiumization of consumption in the Chinese market, multinational brands are now entering a challenging second phase where they compete fiercely for market share,” Dave Xie, retail and consumer goods partner in Shanghai at consultancy Oliver Wyman, said in a statement last week.
Oliver Wyman said in a report last month that the Chinese market has become the incubator for premium product innovations that are being exported. The authors noted, for example, that Tineco floor scrubbers have become Amazon best-sellers.
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