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By Kristin Myers, Editor-in-Chief

ICYMI: More of Gen Z and Millennials Are Saving for Retirement

In case you missed it, market volatility isn't rattling younger investors, who are actually saving more for retirement, according to a new report from Fidelity. Gen Z retirement accounts grew by 87% over last year, while Millennials opened 24% more accounts this year.

What's more, savings rates in employer-sponsored 401(k) retirement accounts are still close to record levels, with a combined contribution rate of nearly 14%. Though an increase, men still saved more than women at a rate of 14.7% compared to 13.7%, respectively.

It's recommended that combined with your employer contributions, you should save 15% of your annual income for retirement. And Gen Z is well on its way to hitting that target, saving roughly 10% in retirement accounts.

But if you're still feeling anxious about the future, you have a lot of company. More than half of U.S. workers told Fidelity they're "extremely or very concerned" about the strength of the U.S. economy. Roughly 20% said they're making changes to their retirement strategy as a result, taking a more conservative approach to their retirement savings.

I wouldn't recommend checking your retirement account daily, because it can only fuel anxiety, especially as the markets continue to take us all on a roller coaster ride. But if you haven't done so as yet, make sure you are still comfortable with the amount of risk you are taking in your retirement portfolio and make adjustments as necessary.

-Kristin

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Term of the Day

Traditional IRA

A traditional individual retirement account (IRA) is an investment account used to save for retirement in addition to, or in place of, an employer-sponsored retirement account. You hold the account individually in your own name.

Contributions to a traditional IRA grow tax-free, but you must pay tax on withdrawals in retirement. The amount you contribute to a traditional IRA isn't always fully deductible. Restrictions on what you can deduct are based on income limits and whether you or your spouse participate in a retirement plan at work. Once you reach these limits, the deduction begins to phase out, reducing the amount you can deduct on your taxes.

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Off the Charts

Here are the maximum contribution limits set for IRAs (traditional and Roth accounts) by the Internal Revenue Code. You can contribute up to $6,000 to your IRA in 2022, and if you're 50 or older, you can contribute an extra $1,000 for a maximum of $7,000 this year.

On Tuesday, August 30 at 12:30 p.m. EDT, join us on Instagram Live for a discussion with The Balance Editor-in-Chief Kristin Myers and Verywell Mind Editor-in-Chief Amy Morin, on how to approach estate planning conversations with your family. Follow us on Instagram to get updates on The Balance's live events!