Average Fidelity 401(k) balance increases sixfold over past decade to almost $300,000

Average Fidelity 401(k) balance increases sixfold over past decade to almost $300,000
Gen X investors saw average accounts rise to $268,900 from $37,000.
MAY 09, 2019

Investors who've had 401(k) accounts at Fidelity for a decade saw their average balance increase sixfold to almost $300,000 since the market bottomed after the global financial crisis, the company said. Workers saving for retirement saw their 401(k) balances crater in the 2008-to-2009 market meltdown. Ten years ago, in the first quarter of 2009, investors had an average account balance of $52,600, according to a report Thursday by the Boston-based firm. In March of that year, the S&P 500 index hit a low. It has more than quadrupled in value since. (More:​ 401(k) managed accounts becoming more diverse) Fidelity examined the accounts of 1.64 million individuals who invested in the same 401(k) plan over the past 10 years and found that the average balance reached $297,700 as of March 31. Baby boomers — many of whom have already reached retirement age — had saved an average of $357,200 as of the first quarter, while accounts of millennial savers averaged $129,800. Gen X investors saw average accounts rise to $268,900 from $37,000. Across a wider universe of 30 million retirement accounts tracked by Fidelity, including those of employees who've only been in the workforce a short time, the average 401(k) totaled $103,700 in the first quarter. The number of people with more than $1 million in their account also increased last quarter to 180,000, from 133,800 at the end of the fourth quarter, according to Fidelity, which is one of the biggest administrators of employer-sponsored 401(k) plans in the U.S.

Latest News

Advisor moves: RBC lands $1B UBS team in Pittsburgh
Advisor moves: RBC lands $1B UBS team in Pittsburgh

Elsewhere, Wells Fargo Advisors adds a $400 million Morgan Stanley veteran in Naples as an ex-Cetera advisor goes independent with LPL

GWG’s Heppner hires Puff Daddy’s attorneys as criminal sentencing looms
GWG’s Heppner hires Puff Daddy’s attorneys as criminal sentencing looms

According to a federal charges Bradley Heppner, 60, received more than $150 million in payments through funneling money from GWG Holdings to a shell company.

Investors accuse Broadstreet fund of alleged billion-dollar 'Ponzi-like' scheme
Investors accuse Broadstreet fund of alleged billion-dollar 'Ponzi-like' scheme

A $1B fund allegedly skimmed 30% off the top, then swapped cash for locked-up stock.

Lawsuit alleges Skechers founders manipulated $9.4B buyout to shortchange investors
Lawsuit alleges Skechers founders manipulated $9.4B buyout to shortchange investors

Insiders allegedly rewrote projections three times in four days.

Fintech bytes: FINNY signs Visionary Square for pay-as-you-go AI prospecting program
Fintech bytes: FINNY signs Visionary Square for pay-as-you-go AI prospecting program

TCI Wealth Advisors also has also tapped JIFFYAI to unify onboarding and servicing, while TradePMR adds ICE market data to its Fusion advisor platform

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor