Average 401(k) Balances Reach Highest Level Since 1998
According to Fidelity, the average balances of 401(k) retirement accounts reached the highest level since Fidelity started tracking account values in 1998.
Key observations:
- The average account balance in the U.S. rose to $74,900 as of March 31, an increase of almost 12 percent from last year
- 10-year continuous participants have an average balance is about $191,000.
- Participants age 55 years or older and are 10-year continuous participants have an average is about $233,800.
- About two-thirds of the increase in account balances in the first quarter was driven by market performance, while one-third was from participant contributions
- Participants saved an average 8.2 percent of their salaries.
- Americans held $3.1 trillion in 401(k)s as of Dec. 31.
These figures show that contributing to a 401(k) early, at a “meaningful” rate and continuing to save makes a difference. Read more in this Bloomberg article:
Average 401(k) Balances Reach Highest Level, Fidelity Sayshttp://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aUstRNlUBCL4May 11 (Bloomberg) — Average balances of 401(k) retirement plans reached the highest level since Fidelity Investments began tracking account values in 1998.