Question: Our recent annual plan review revealed a significant increase in contributions to our Roth 401(k) account option among our younger workers. How does this compare to industry data?
Answer: Fidelity’s Q3 Retirement Trends analysis found that Roth savings vehicles are increasing in interest among retirement savers — particularly among younger generations — likely due to their tax efficiency over the long term. Third-quarter data show 20% of Gen Z 401(k) participants are choosing to contribute to a Roth 401(k), up from 16% in 2024. The data shows 19% of Millennials contribute to a Roth 401(k).
