17 July 2019

Markets Push 401(k) Balances To Record Highs

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According to Fidelity Investments, the average balance rose 12.9 percent at the end of the second quarter to a record high of $91,000. Fidelity looked at the 401(k) accounts it manages for 13 million workers and found the increase from an average balance of $80,600 just a year ago.

The data shows the average among workers of all ages, from those just starting their careers to those approaching retirement. For workers who have had a workplace retirement plan for 10 years or more, the average balance was a record $246,200.

Fidelity also found that the average IRA account balance at the end of the quarter was $92,600, an increase of nearly 15 percent from a year ago.

About 77 percent of the growth was fueled by a strong equity market that shows little signs of slowing. The remaining 23 percent was due to worker and employer contributions.

Stocks have been hitting numerous records all summer, with the Dow Jones industrials index topping 17,000 for the first time and the Standard & Poor's 500 nearing 2,000. Those gains have come even as volatility has plummeted.

Despite the increase in retirement balances, many experts say that Americans are still not saving enough to live on in retirement.

Click here for the original article from CBS Money Watch.

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