Recent surveys from Fidelity Investments and Bank of America Corp. have found 401(k) participants increased their contributions in the first quarter. Bloomberg reports that 7.5 percent of investors in Fidelity plans increased their contributions. Two-thirds in Bank of America Merrill Lynch investors increased their contributions or started saving, while 34 percent stopped or reduced savings.
According to Fidelity, savers are more confident about the market. “Participants are more comfortable,” Beth McHugh, vice president of market insights at Fidelity, told Bloomberg. “They’re less concerned with some of the volatility.”
Kevin Crain, head of institutional client relationships for Bank of America Merrill Lynch, agreed. “Increased contribution rates to 401(k) plan accounts during the last couple of quarters is evidence of an improving economy,” he told the news agency.