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At present, most Americans are pretty hooked on the importance of saving for retirement. Natasha Abellard of Buzz60 has history.
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A good sign for retired investors, the average balance of the 401 (k) account reached a record $ 106,500 at the end of the third quarter.

This is just one of the optimistic conclusions of Fidelity Investments' latest quarterly analysis of retirement savings trends for its 30 million 401 (k) account holders. IRA.

The record balance for workers with 401 (k) plans marks an increase of nearly 7% over the previous year and exceeds the previous record balance of $ 104,300 over the last quarter of the year. last year. Account balances at the end of September were nearly double the average balance of $ 56,900,401 (k) recorded in the third quarter of 2008 during the financial crisis, Fidelity said.

The average IRA balance also reached a record high of $ 111,000, more than double the balance of $ 52,000 recorded in the third quarter of 2008.

However, equities became volatile in the last quarter of 2018. In October, the US benchmark, the Standard & Poor's 500, briefly moved into correction territory, defined as a 10% drop by compared to an earlier peak. Prior to Monday's trading session, the S & P 500 index was down 7.1% from its record.

One of the positive aspects of the financial crisis has been to motivate investors to learn about what needs to be done to "protect and grow" their retirement savings, said Kevin Barry, President of Fidelity.

"We are seeing more and more positive savings behaviors over the last 10 years, which has allowed many people to regain their retirement savings goals," he said. declared.

Investors have also benefited from the new benefits of the 401 (k) plan, such as automatic enrollment, as well as employers who place workers who do not select certain types of investments in default options such as up-to-date funds. target. The popularity of these funds has exploded. They have a more aggressive asset mix – including a larger stock of stocks – when people are younger, but they become more conservative with the approach of retirement.

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Other highlights of Fidelity's latest retirement savings analysis:

Record number of 401 (k), millionaires IRA

The number of Fidelity 401 (k) holders with balances greater than $ 1 million increased to 187,400 at the end of the third quarter, up 41% from the previous year and above the previous record of 168 000. The number of IRA millionaires reached a record 170 400, or 25 percent more than a year earlier.

More money: Loyalty of 401 (k) millionaires, up 41% in the third quarter, for a record 187,400

Contribution levels of the female record

Female investors paid a record 8.5% of their average salary to their 401 (k) in the quarter ended September. In addition, 32% of women with 401 (k) s increased the amount of money set aside in their accounts over the last year, up 14% from the 12 months ended third quarter of 2008.

Target date funds are gaining popularity

The popularity of target date funds, or funds that are more risky when savers are younger and fewer when workers are approaching retirement, has continued to grow. For the first time, more than half (50.4%) of 401 (k) savers had all of their retirement savings in target date funds.

At the end of the third quarter, just over 30% of all assets in the 401 (k) group had been invested in target date funds, up from 9.8% a decade earlier. And just over half (51%) of all new investments in 401 (k) s were deposited in these funds.

The balances of the constant savers of the millennium increase

The average balance for millennials who have been invested in their 401 (k) plans for five consecutive years has exceeded $ 80,000, up from $ 20,600 five years earlier.

Eggs of 401 (k) long-term savers swell

The average balance of Fidelity 401 (k) investors who invested in their 401 (k) accounts for five consecutive years reached $ 221,200 at the end of the third quarter, up from $ 103,700 five years ago.

And the average balance of accounts of savers who have been saving continuously in their 401 (k) plans for 10 years is $ 305,400. This balance was almost five times the amount of $ 65,700 for this group 10 years ago.

Workers who have been saving since 401 (k) since the third quarter of 2003, or for fifteen consecutive years, have seen their average balance increase from $ 47,800 in 2003 to $ 400,300.

"These groups of long-term savers are excellent examples of how a consistent approach to retirement savings can generate significant financial gains over the long term," said Barry, of Fidelity.

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