The average 401(k) account balance was up 14% from last year, at $118,600, Fidelity said
Retirement-account balances hit their highest levels in two years amid improved market conditions and consistent savings rates, according to Fidelity Investments.
“This past year ended on a high note for retirement savers,” said Sharon Brovelli, president of workplace investing at Fidelity Investments. “When it comes to matters like market stability and economic events, 2023 gave us the highs of the highs and the lows of the lows, but encouragingly, many retirement savers took the long view and stayed the course through it all, which is the type of commitment that can lead to a secure financial future.
The fourth quarter also saw a jump in the number of 401 millionaires, Fidelity said. The number of people with at least $1 million in their 401 increased to 422,000, up 20% from the third quarter of 2023, when the number of millionaires had dropped due to market conditions. The fourth quarter also showed an 11.5% increase from the second quarter of 2023.
The savings rate for the millionaire investors was 26.6%, which includes their personal investments as well as contributions from their employer, Shamrell said.Overall, the total 401 savings rate remained steady at 13.9%, including employee and employer contributions, which was consistent with the second and third quarters of 2023 and up slightly from the prior year’s fourth-quarter rate of 13.7%, Fidelity said.
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