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Source: Fidelity
From Fidelity's press release published on February 18, 2021:
- Retirement accounts reach record levels in Q4. The average IRA balance was $128,100, a 9% increase from last quarter and 11% higher than average balance of $115,400 a year ago. The average 401(k) balance increased to $121,500 in Q4, an 11% increase from Q3 and up from 8% from a year ago. The average 403(b) account balance increased to a record $106,100, an increase of 10% from last quarter and the first time the average TEM balance has reached six figures.
- Employee savings rates reached record levels. Despite the ongoing financial uncertainty, individuals continued to save in their workplace savings accounts. The average quarterly savings rate for 403(b) accounts was 7.3% and the savings rate for 401(k) accounts reached 9.1%, both record levels.When combined with employer contributions, the total savings rate (employee + employer contributions) for 403(b) accounts was 11%, while the total savings rate for 401(k) accounts was 13.5%. Across Fidelity’s 401(k) platform, one in three (33%) individuals increased their contribution rate at some point in 2020.
- And while the number of IRAs increased across millennials, Gen X and Baby Boomers, the number of IRAs among Gen Z investors nearly tripled in 2020 to more than 114,000 accounts.
- Average 401(k) balance for long-term savers exceeds a quarter of million dollars. The average 401(k) account balance for women who have been in their plan for 10 years straight increased to $297,900, up from $249,200 a year ago. As of Q4, there are 523,000 women on Fidelity’s platform who have been in the same 401(k) plan since Q4 2011, when the average balance for this group was $61,800.
More news coverage:
- Fidelity: Retirement Balances (and 401k Millionaires) Hit Record Levels in 2020 (401(k) Specialist)
- American Workplace Retirement Savings Accounts Hit New Records (Bloomberg)
