Retirement Data: Fidelity Plan Balances Q1 2020

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Source: Fidelity

Fidelity Investments has over 30 million 401(k), IRA and 403(b) retirement accounts. This makes them uniquely positioned to describe the retirement savings trends of investors.

From Fidelity's press release posted April 24, 2020:

• Market downturn caused average 401(k), IRA and 403(b) balances to drop. The average 401(k) balance was $91,400, down 19% from the record high of $112,300 in Q4 2019, but still higher than Q1 2010 balance of $71,500. The average IRA balance was $98,900, a 14% decrease from last quarter but higher than the Q1 2010 balance of $66,200. The average 403(b)/tax exempt account balance was $75,700, down 19% from last quarter but still above the average balance of $50,000 in Q1 2010.


• The average amount contributed to an IRA in Q1 2020 grew to $3,330, a 10% increase over the average contribution amount in Q1 2019. Contributions to 403(b)/tax exempt account also increased to 6.9%, up from 5.6% in Q4 and 5.4% a year ago.


• While the average 401(k) contribution rate remained steady at 8.9%, consistent with Q4 2019, 15% of 401(k) savers actually increased their contribution rate in the quarter. The average employer contribution was also steady at 4.7%, a slight increase from 4.6% in the previous quarter and consistent with 4.7% in Q1 2019.


• Hardship withdrawals increased slightly, new 401(k) loans dropped. Prior to the enactment of the CARES Act in late March, only 1.4% of individuals took a hardship withdrawal from their 401(k) in Q1 2020, less than half a percentage point more than the 0.9% that took a hardship withdrawal in Q1 2019. The percentage of individuals initiating a 401(k) loan dropped to 2.3% in Q1, down from the 2.6% of 401(k) savers that initiated a loan in Q4 2019 and consistent with 2.3% that took a 401(k) loan in Q1 2019. While ongoing financial uncertainty and provisions within the CARES Act may result in higher loans and withdrawals later in the year, individuals did not draw significant funds from their retirement accounts in the first quarter.

For more information related to this press release please read:

• 401(k), IRA Balances Plunged Amid Coronavirus Correction; Ranks Of 401(k) Millionaires Fell (IBD)  
• 401(k) balances sink 19% due to coronavirus, Fidelity says (CNBC)
• Retirement savers have been following generic financial advice — according to Fidelity — and that’s a good thing right now (MarketWatch)