Do you have a million dollars saved up from your decades of hard work and saving til it hurts? A new analysis by Fidelity found that in the 401(k) plans it keeps records for, 47,000 more participants had over $1 million this year compared to last year. CNN’s Jeanne Sahadi reports:
A new analysis by Fidelity Investments, one of the largest providers of 401(k) retirement plans, found that the number of accounts with balances topping $1 million rose by 9.5% in the third quarter.
All told, of the roughly 24 million participant accounts in the 401(k) plans for which Fidelity serves as record keeper, 544,000 of them had balances over $1 million, up from 497,000 in the second quarter.
The average balance in that group was $1.616 million, up from $1.595 million in the prior quarter.
Among Gen Xers — who are next in line for retirement — those who have been saving for at least 15 years had an average balance of just under $600,000, up 6% from the quarter before, according to Fidelity data.
And it found that the average balance for all participants who were saving for five, 10 or 15 years rose during the quarter.
The growth was due not just to market gains, but also a strong average savings rate of 14.1%, which includes employee contributions (9.4%) plus an employer match (4.7%).
“We are continuing to observe a dedication to saving for retirement, with contributions to these vehicles holding steady if not increasing,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “Consistent retirement contributions during various market cycles is important … (since they) will help set Americans up for a future of financial wellness and security.”
Action Line: When you want to talk about rolling over your 401(k)s and consolidating, email me at ejsmith@yoursurvivalguy.com. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
