Are you investing as much as you can? Fidelity says 401(k) accounts at record high.

People are investing more money into their 401(k) accounts.

Have people been saving enough to fund their retirement adequately? Every quarter, Fidelity Investments (the nation’s largest provider of defined contribution plans) provides a report on retirement activity in the accounts that they manage. The most recent report (at the time of this book’s publication) was the end of the first quarter in 2015.

As of that date, Fidelity reports the following:

401(k) highlights

  • The average 401(k) balance was $91,800 (which is 3.6 percent higher than the prior year).
  • During the year, 23 percent of employees increased their contribution rate.
  • The average savings rate (which includes both employee and employer contributions) increased to 12.5 percent. The employee rate remained constant at 8.1 percent, but the employer rate increased to 4.4 percent.
  • For employees in a 401(k) plan for 10 years or more, the average balance was $251,600, up 12 percent year-over-year.

IRA highlights

  • The average IRA balance was $94,100, a record high.
  • IRA contributions dropped slightly from the prior quarter, from $3,270 to $3,150.
  • The overall percentage of people contributing to those accounts rose 7 percent.
  • Among investors under age 35 the increase was 26%.

That’s a lot of information, but basically it is indicating that people are contributing more money into their retirement accounts than they have before. People have about $90,000 in their 401(k) account and their IRA account. Those who have been contributing for ten years or more have over $250,000. People are increasing their contribution rate. Employers are increasing their contribution. Sounds good, right? Well, the news isn’t all good.

About: This video is from the Fox Business News.
Topics: Investing, Personal Finance
Published: May 21, 2015

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