Fidelity: Average 401(K) Balance in 3Q is Highest Ever

Fidelity Investments said today that the average 401(k) balance reached $75,900 at the end of the third quarter, the highest it has been since it started tracking the data more than 12 years ago.
The third-quarter ending balance marks an increase of 4.2 percent from the end of the previous quarter, and an 18.0 percent increase over one year prior when it was $64,3003.
Fidelity is the nation’s largest1 401(k) provider. Fidelity’s analysis of its 12 million 401(k) accounts in more than 20,200 corporate contribution plans shows found that the average annual employee contributions grew 7.3 percent over the past five years to $5,900 at the end of the third quarter, up from $5,500 ending the third quarter 2007.
The average annual employer contributions – sometimes called a company match – jumped to $3,420 at the end of the third quarter, up 19.0 percent since the third quarter of 2007 when it was $2,880.
“It’s encouraging to see companies making a greater contribution to their employees’ 401(k) plans as we know a healthy employer match not only impacts employees’ retirement savings but also has a positive impact on their behavior, ultimately leading to better outcomes,” said James M. MacDonald, president, Workplace Investing, Fidelity Investments.

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