Thursday, July 17, 2014

Bull market sends 401(k)s soaring to record highs

Fidelity analyzed its accounts for 13 million workers with 401(k) plans as well as its IRA balances for individuals at the end of the second quarter.
• The average 401(k) balance rose 12.9% to $91,000, a record high, up from $80,600 at the end of the second quarter of 2013. This represents accounts from a wide range of workers, including those just starting their careers and others nearing retirement.
• The average balance in a Fidelity Individual Retirement Account (IRA) at the end of the quarter was $92,600, another record high, up 14.7% compared with the same time last year.
• 77% of the growth in account balances is due to the stock market; 23% is due to employee and employer contributions.
• The average balance for employees who have been saving in their 401(k) for 10 years increased 15% over the last decade to $246,200.
• Employees contributed an average of $6,050 to their 401(k)s this past year; employers contributed an average of an additional $3,540.
Source

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