Please click on chart above to enlarge
Source: Fidelity
Fidelity recently released their Q1 2019 Retirement Account Balances press release. I focus on these numbers because of Fidelity's size. They have $7.4 trillion in client assets, including more than 30 million retirement accounts. Here are a few items to highlight from their press release:
- As of Q1 2019, 52% of individuals had all of their 401(k) savings in a target date fund, compared with just 16% in Q1 2009. In addition, a much lower percentage of individuals had all of their 401(k) savings in stocks -- only 7% of individuals had an all-stock 401(k), compared with 15% who had an all-stock 401(k) allocation in Q1 2009.
- Combined average balances for individuals saving in both an IRA and a workplace savings plan increased to more than $300,000. The combined average balances for savers with both a workplace retirement plan, such as a 401(k) or 403(b), and an IRA reached $307,600, a record high and an increase of 9% from the combined average balances of $281,000 at the end of 2018.
- Average 401(k), IRA and 403(b) balances rebounded in Q1 2019. The average 401(k) balance rose to $103,700, an 8% increase from $95,600 in Q4 2018. The year-over-year average balance is up roughly 1% from $102,900 in Q1 2018. The average IRA balance increased to $107,100, a 9% increase from last quarter and 2% higher than the $105,100 balance one year ago. The average 403(b) account balance increased to $85,800, also a 9% increase from last quarter and up 2% from Q1 2018.
- Employee and employer contributions to retirement accounts hit record levels in Q1. The average 401(k) employee contribution amount, in dollars, reached a record level of $2,370 in Q1, a 15% increase over one year earlier. In addition, the average 401(k) employer contribution, or company match, reached $1,780 in Q1, a record high and a 6% increase from one year earlier. The average 401(k) employer contribution rate, in terms of percentage of salary, reached 4.7% in Q1, which was also a record high and boosted the average total savings rate (employee contributions + company match) to an all-time high of 13.5% in the first quarter. In addition, contributions to 403(b)/tax exempt retirement accounts also increased to record levels, with the average employee contribution amount reaching $1,700 in Q1, while the average employer contribution increased to $1,430.
- The number of 401(k) and IRA millionaires increased. The number of people with $1 million or more in their 401(k) increased to 180,000, up from 133,800 at the end of Q4, while the number of IRA millionaires increased to 168,100, up from 138,800 last quarter.
Please click on chart above to enlarge
Source: Fidelity
