Retirement account balances bounce back in Q2

Retirement account balances bounce back in Q2
The rise reflects the stock market's rebound and investors' continued contributions to their accounts, according to a Fidelity report
AUG 11, 2020

Balances in retirement accounts, including 401(k) accounts and IRAs, grew by double digits during the second quarter as the stock market rebounded and investors continued to contribute to their accounts, according to a Fidelity report.

Eighty-eight percent of 401(k) participants contributed to their accounts in the second quarter, off just slightly from the record high of 89% in the first quarter, according to the report.

A Fidelity executive noted that most employers were sticking with matching contributions and said that encourages participation by employees.

“Nearly 90% of employers continued to offer matching contributions to their employees over the last quarter, despite the unsteady business landscape,” Kevin Barry, president of workplace investing at Fidelity, said in a statement.

The report also cited a 20% rise in contributions to IRAs in the second quarter compared to the same period last year and linked that to this year’s extended tax season.

The average 401(k) account held $104,400 at the end of the second quarter, up 14% from the first quarter, but down 2% from a year earlier. The average IRA held $111,500, up 13% from the first quarter and slightly higher than the year-ago average of $110,400.

The Fidelity report reflects data on more than 30 million 401(k) and 403(b) accounts and IRAs.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.