Average 401k balance reaches record high
According to Fidelity Investments, the average 401k balance is up more than 11 percent from a year ago, which was also a record.
This post is from Brandon Ballenger at partner site Money Talks News.
At Fidelity Investments, the largest 401k provider, average balances reached a record high of $84,300 in the third quarter, Fidelity says. The average is based on Fidelity's "corporate defined contribution plan base of nearly 21,000 plans and 12.6 million participants."
The average is up more than 11 percent from $75,900 a year ago. More than 70 percent of the gains came from stock market growth. "While stocks dipped at the end of September amid fears of the government shutdown, the Dow Jones Industrial Average still ended the month up by more than 10 percent from a year prior," CNNMoney says. The S&P 500 was up more than 15 percent.
The other 28 percent of gains came from the contributions of employees and employers.
You should always snatch up every dime toward a 401k your employer offers in the form of matching — it's free money.
For those who have been plugging away at their nest eggs for a while, averages were much higher. "Employees who were continuously active in their 401k plan over the last 10 years saw the average balance rise 19.6 percent to $223,100 during the past 12 months," Fidelity says. "For pre-retirees age 55 or older who have been active in their plan for at least 10 years, the average balance is now $269,500."
We recently wrote that about half of 401k account holders find them confusing. If you're confused about your 401k or other retirement investments, and it's keeping you from participating, learn more about it. There will come a day when you'll be glad you did.
More on Money Talks News
- Why you're stressed over your 401k
- How much should you contribute to a 401k?
- Should a 22-year-old have an IRA?
$84K sounds low, but a lot of people might also have money in IRAs. I, for instance, have no 401k but I do have an IRA worth nearly $210,000, and it's fully invested in stocks. My wife has only $35K in her 401k plan, but her IRA is also worth another $210,000, and we're both only 48.
Let's see average $269,500 in retirement age 401K plans.
going to live until you are 90 after retirement. 25 years after retirement age of 65
that is just about $10,000 a year from retirement money.
Oh that is about what Obama Care is going to charge you for health insurance imagine that.
We are so doomed folks.
Then the levels will go down again.
Read between the lines........... The middle class is shrinking due to quality job disintegration. They have raided their retirement so who does that leave. Upper income folks. Fewer retirement accounts with larger balances = New Record High Retirement AVERAGE Account Balances.
It is just spin from the spin specialist here.
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