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Source: Fidelity
From Fidelity's press release published on May 13, 2021:
- Retirement accounts reach record levels for the second consecutive quarter. The average IRA balance was $130,000, a 1% increase from last quarter but a 31% increase from Q1 2020. The average 401(k) balance increased to $123,900 in Q1, a 2% increase from Q4 and up 36% from a year ago. The average 403(b) account balance increased to a record $107,300, an increase of 1% from last quarter and 42% higher than in Q1 2020.
- Employers continue to make matching contributions to 401(k) and 403(b) accounts. The average 401(k) employer contribution rate was 4.6%, and the average amount contributed to employees’ 401(k) was $1,720. Among 403(b) accounts, the average employer contribution was 4.1% and the average amount was $3,000.
- The most popular 401(k) match formula in the first quarter, which is used by 41% of employers on Fidelity’s platform, continues to be a 100% matching contribution for the first 3% of an employee’s contribution and 50% match for the employee’s next 2%. Under this formula, a 5% employee contribution of $100 would be eligible for an $80 employer match.
- 26% of overall IRA contributions were made by investors under the age of 35, up from 23% in Q1 2020. The percentage of contributions to Roth IRAs continues to increase, rising to 60% of all IRA contributions in Q1 2021.
More coverage at Investment News, MarketWatch.
