Balances in American 401(k) plans have rebounded nicely from the market crash of a few years ago, and now sit at the highest level they've been ever since Fidelity Investment began tracking them back in 1998. As of March 31, the average account balance in a 401(k) was $74,900, an increase of nearly 12 percent from the same date a year earlier.
If $74,900 doesn't sound like a lot for a retirement nest egg, that's because the study tracked all 401(k) plan participants, including those just starting on their retirement savings. For people who have been investing in a 401(k) plan for at least ten years, the average balance is $191,000. For people over the age of 55 who have been investing for at least ten years, that average goes up to $233,800.
Participants are saving an average of 8.2 percent of their salaries in their 401(k)s. Fidelity reports that 10 percent of its account holders increased their savings rate in the first quarter of this year; that's the highest that number has been since they started tracking it, in 2006.
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