Until now, most Americans are quite hip about the importance of savings for retirement. Buzz60's Natasha Abellard has the story.
On a good sign for retirees, the average account balance 401 (k) reached a record $ 106,500 at the end of the third quarter.
The rest of the record for workers with 401 (k) projects rose almost 7% over the previous year and exceeded the previous record of $ 104,300 from the last quarter of last year. Balance of accounts at the end of September was almost double the average of $ 56,900 401 (k) in the third quarter of 2008 during the financial crisis, Fidelity said.
The IRA's average balance also rose to $ 111,000, more than double the $ 52,000 from the third quarter of 2008.
However, inventories became unstable in the last quarter of 2018. In October, the US stock index, Standard & Poor's 500, soon fell to a correction area, down 10% from a previous high. The stock of Monday's stock market session, the S & P 500 dropped by 7.1%.
One of the positive signs of the financial crisis was that it prompted investors to educate themselves about the steps they need to take to "protect and increase" their retirement savings, said Kevin Barry, chairman of the site investing in Fidelity .
"We have seen more and more positive savings behavior over the past 10 years, which has helped many people return to their retirement savings targets," he said.
Savers have also benefited from the new benefits of the 401 (k) program, such as automatic sign-up, as well as employers who place workers who do not opt for specific types of investments in so-called default choices, such as target date chapters. These chapters have grown in popularity. They have a more aggressive mix of assets – including greater help with stocks – when people are younger but become more conservative as workers close to retirement.
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Other important data from Fidelity's latest Savings Savings Analysis:
Record number 401 (k), IRA millionaires
The number of Fidelity 401 (k) holders with balances over $ 1 million increased to 187,400 at the end of the third quarter, up 41% from the previous year and compared to the previous quarter to 168,000. The number of IRA millionaires rose to a record 170,400, 25% more than a year ago.
More money: 401 (k) millionaires in Fidelity jump 41 percent in the third quarter to record 187,400
Contributing levels from the women's register
Female investors contributed an average of 8.5% of their earnings to 401 (k) s in the quarter ending in September. In addition, 32% of women with 401 (k) s increased the amount of money they put on their accounts in the past year, from 14% in the 12 months ended in the third quarter of 2008.
Target funds gain more results
The popularity of funds with a target date or funds that take more risks when savers are younger and fewer when workers close to retirement continued to grow. For the first time, more than half (50.4%) of the 401 (k) savers had all their savings in pension funds.
Less than 30% of all 401 (k) assets were invested in funds with target date at the end of the third quarter from 9.8% 10 years earlier. And just over half (51%) of all new investments in 401 (k) s have been deposited into these funds.
Balances of consistent thousands of savers on the rise
The average balance for members of the millennium generation invested in their 401 (k) projects for five consecutive years exceeded $ 80,000, from $ 20,600 five years earlier.
The ova of the long 401 (k) eggs swell
The average balance of Fidelity 401 (k) investors that were invested in their 401 (k) accounts for five consecutive years amounted to $ 221,200 at the end of the third quarter, from an average of $ 103,700 five years ago.
And the average account balance for investors who continuously save their 401 (k) plans for 10 years amounted to $ 305,400. This equilibrium was almost five times the amount of $ 65,700 for this group 10 years ago.
Employees who save their 401 (k) from the third quarter of 2003 or for fifteen consecutive years, showed that their average balance rose to $ 400,300 from $ 47,800 in 2003.
"These long-term saver groups are excellent examples of how a consistent approach to retirement savings can lead to significant economic benefits in the long run," said Barry of Fidelity.
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