Fidelity Retirement Savings Analysis: Savings Rates, Account Balances Climb to Record Levels in Firs

Fidelity Investments press release May 12, 2017 ------ Fidelity Investments® released its quarterly analysis of its 401(k) and Individual Retirement Accounts (IRA). The analysis1 reveals: Savings rates reach record levels: The total savings rate for 401(k) savers, which combines individual contributions plus employer contributions (such as a company match and profit sharing), reached a record 12.9 percent in Q1, topping the previous high of 12.8 percent in Q1 2006. In addition, a record 27 percent of 401(k) investors increased their individual savings rate in the last 12 months. Savings rates also increased for those saving in an IRA. In fact, 17 percent more Fidelity customers contributed to their accounts this quarter versus the same period last year. In addition, there was a 38 percent increase in the amount being contributed. This is great news for all savers, but especially for Millennials where there was a 42 percent increase in number of accounts receiving contributions and 51 percent increase in the amount of contribution dollars. Retirement account balances set new records. Positive stock market performance and increasing contributions drove the average 401(k) and IRA balances to record levels at the end of Q1. The average 401(k) balance hit $95,500, while the average IRA balance climbed to $98,100. To get more in depth information click on the picture below to read the release.