Stock Market’s Rise Lifts Retirement Balances to a New Record High

Infographic - Fidelity's analysis of 13 million 401(k) accounts: Q2 2014 (Graphic: Business Wire)

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BOSTON--()--At the end of the second quarter, Fidelity’s analysis of its 401(k) 1 and IRA accounts revealed:

  • For those employees who have been active in a workplace 401(k) retirement plan for a full 10 years2, their average balance rose 15.0% per year over the past decade to $246,200.
  • The quarterly average 401(k) balance, which includes all employees at various stages of their careers including just starting a job to nearing retirement, rose 12.9% to $91,000, a record high, up from $80,600 at the end of the second quarter 2013.
  • The average balance in a Fidelity Individual Retirement Account (IRA) at the end of the quarter was $92,6003, also a record high, up 14.7% over the same period one year prior.
  • Impact of the stock market remains significant with 77% of the one-year 401(k) balance increase due to the equity markets and 23% due to employee and employer contributions.
  • Contributions by employees to 401(k)s continued to grow, averaging $6,050 over the past year, with an average of $3,540 additional being contributed by employers.

“The recent record markets have resulted in increased retirement savings for millions of Americans,” said Jim MacDonald, president, Workplace Investing, Fidelity Investments. “Now is a perfect time for people to seek guidance to ensure their savings and investment strategies can weather all market conditions. Fidelity’s continued investment in easy-to-use guidance, innovative digital platforms and savings tools are helping drive improved retirement readiness.”

To help all investors understand how much money they’ll need to save for retirement, Fidelity offers a Viewpoints with an interactive modeling tool. In addition, for 401(k) participants nearing retirement wanting to turn their savings into income, the company offers a comprehensive online tool, Income Simulator, as part of its NetBenefits® workplace guidance offering.

For media-ready infographics that help visually tell the story of 401(k) retirement saving in America, click here: 401(k) savings by the numbers.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc., 500 Salem St., Smithfield, RI 02917

Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.
Income Simulator is an educational tool.

Past performance is no guarantee of future results.

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© 2014 FMR LLC. All rights reserved.

1 All 401(k) data as of June 30, 2014 unless otherwise stated, and is based on our recordkept corporate defined contribution plan base of 21,200 plans and 13 million participants (who are actively employed employees and retired or terminated employees who still carry a balance), excluding tax-exempt employees.

2 Employees with balance and actively employed by employer continuously for past 10 years.

3 IRA data analysis from January 1, 2014 through June 30, 2014.

Contacts

Fidelity PR
Chuck Kabat, 617-563-3365
charles.kabat@fmr.com
or
Fidelity Corporate Communications, 617-563-5800
fidelitycorporateaffairs@fmr.com

Release Summary

Fidelity 401(k) balances reach all-time high of $91,000

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Contacts

Fidelity PR
Chuck Kabat, 617-563-3365
charles.kabat@fmr.com
or
Fidelity Corporate Communications, 617-563-5800
fidelitycorporateaffairs@fmr.com