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Source: Fidelity
From Fidelity's press release posted August 11, 2020:
- The average IRA balance was $111,500, a 13% increase from last quarter and slightly higher than the average balance of $110,400 a year ago. The average 401(k) balance increased to $104,400 in Q2, a 14% increase from Q1 but down 2% from a year ago. The average 403(b) account balance increased to $91,100, an increase of 17% from last quarter and up 3% from a year ago.
- Retirement savers did not pull back on contributions, despite market volatility. Almost nine out of 10 individuals (88%) contributed to their 401(k) in Q2, a slight drop from last quarter’s record high of 89% but still in the top five averages since 2002. Less than one percent (0.8%) of 401(k) savers stopped saving in the quarter, while 9% increased their contribution rate. Among 403(b) accounts, 96% of individuals either maintained or increased their contribution rate in Q2. Among 403(b) accounts specifically in the health care industry, which includes workers at hospitals and health networks, 96% of individuals maintained or increased their contribution rate in Q2.
- Younger Americans continue to invest in their future. The past quarter saw Millennials maintain a focus on contributing to their retirement accounts, with the number of IRA accounts owned by Millennials in Q2 2020 increasing by 23% since Q2 2019. In particular, Millennials continued to prefer investing in Roth IRAs, with a 36% year-over-year growth in the number of contributing accounts and a 50% increase in the amount of Roth IRA contributions.
- Retirement savings: Americans piled money into 401(k)s, IRAs even as the coronavirus-fueled recession took hold (USA Today)
- Average Retirement Savings Balances Rise To This Much, Fidelity Says (Investor's Business Daily)
