Some good news regarding people keeping their eye on the long term: Despite huge market swings in the first quarter, the majority of retirement savers continued to add to their nest eggs. The average 401(k) contribution rate remained steady at 8.9 percent, consistent with the previous quarter, according to new data from Fidelity Investments.
Not only that, 15 percent of 401(k) savers actually increased their contribution rate in the first quarter. The average employer contribution also held steady at 4.7 percent, up from 4.6 percent in the previous quarter and consistent with 4.7 percent in the 2019 first quarter.
In other types of retirement accounts, the average amount investors contributed to an IRA increased by 10 percent year over year to $3,330, up 10 percent over the average contribution amount in last year’s fourth quarter. Contributions to 403(b)/tax-exempt accounts also increased, to 6.9 percent from 5.6 percent in the fourth quarter and 5.4 percent a year ago.
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