Rising contributions and a strong stock market drove the average 401(k) and IRA balances of Fidelity accountholders over the $100,000 mark in the last quarter of 2017, the firm’s recent quarterly analysis revealed.
The average 401(k) balance rose to $104,300 and the average IRA balance climbed to $106,000 in 4Q 2017. Both averages were up 13% from Q4 2016.
In addition, Fidelity reported that long-term 401(k) savers saw significant increases in their average account balances. For participants who have been contributing to their 401(k)s for 10 consecutive years, the average 401(k) account balance increased to $286,700, up from $233,900 a year earlier. For those who have been in a 401(k) plan for 15 straight years, the average balance rose to $387,100, up from $318,500 in Q4 2016.
Retirement savers also continued to increase their 401(k) and IRA contributions last year, the analysis found. Nearly a third (30%) of 401(k) savers increased their savings rate in 2017, boosting the average deferral to 8.6% percent in Q4 2017, an increase from 8.4% in Q4 2016. The average IRA contribution amount increased to $1,730 in Q4 2017, $140 higher than Q4 2016’s average of $1,590.
The number of Fidelity 401(k) participants with at least $1 million in their 401(k)s rose to 150,000 at the end of 2017, up from 93,000 at the end of 2016. Similarly, the number of investors with $1 million in their IRA accounts rose to 152,000, an increase from 109,000 at the end of 2016.
