According to Fidelity Investments, this is nearly three times higher than the average Fidelity 401(k) balance of $77,300.
Fidelity examined the account balances and contributions of those using a workplace 401(k) or 403(b) and an IRA and found that while the combined average balance for investors in their 20s was $30,200, the numbers steadily increase with age—up to $397,400 for those who are on the verge of or entering retirement (between the ages of 65 and 69). The average combined contribution for investors in their 20s was $6,000 and gradually increased over time. The average combined contribution for all investors in the population was $11,150.
This analysis also examined the savings rate of investors across multiple age ranges and found average combined contribution levels peaked annually at $13,100 for investors in their 50s. This can be attributed to higher income levels and the ability to make catch-up contributions beginning at age 50.
“While workplace retirement accounts are a great place to save for retirement, we know some will need additional savings to achieve their vision of retirement as they encounter all that life entails,” said James M. MacDonald, president, Workplace Investing, Fidelity Investments. “By maximizing the long-term, tax-advantaged growth potential of both workplace savings plans and IRAs, investors can create a personalized plan to help them achieve better outcomes in retirement.”Additional data is here.
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