Four 401(k) Mistakes to Avoid While Saving for Retirement

Now’s a good time to reflect on how to optimize your 401(k) savings and ensure you’re not making any of these common mistakes.

A mason jar labeled 401(k) sits on the desk of a woman working on a computer in the background.
(Image credit: Getty Images)

401(k) account balances have risen for retirement savers of every generation for the third straight quarter. This good news for hardworking Americans was revealed in Fidelity Investments’ Q2 2023 Retirement Analysis. Fidelity found that the overall average 401(k) account balance in the second quarter of this year increased to $112,400, up 8% from five years ago and 39% from 10 years ago.

Members of Generation Z experienced the largest year-over-year increase (66%) in 401(k) account balances during the quarter, followed by Millennials with 24.5%, Gen Xers with 14.5% and Baby Boomers with 6.3%.

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Sean Murray, CFA
Head of Retirement, Envestnet

As the Head of Retirement for Envestnet, Sean plays a key role in the ongoing growth and alignment for Envestnet’s solutions for the workplace. Sean has over 25 years of experience in the financial services industry serving in a multitude of executive roles for some of the top firms in the asset management space. Prior to joining Envestnet, Sean was a Managing Director with BlackRock and led their Retail Defined Contribution Investment group while also serving on a variety of executive committees across the firm.