Friday, February 14, 2020

Record Retirement Savings

Average 401(k) and IRA balances have hit record levels, according to a new study out from Fidelity. The average 401(k) balance rose to $112,300 last year, a 7 percent increase from last quarter’s balance of $105,200. The average IRA balance was a new high of $115,400.

It’s not just because the markets are up — employees are saving more. One-third of plan participants increased the amount they were saving by an average of 3 percent. And a record 35 percent of employers automatically enrolled new workers in their 401(k) plan.

The study also found a record 441,000 IRA or 401(k) accounts Fidelity manages had balances of $1 million. Still, 401(k) and IRA millionaires are relatively rare: The number of retirement millionaires represents 1.6 percent of the 27.2 million IRA and 401(k) accounts managed by Fidelity.

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