Good news from Fidelity Investments on the subject of retirement planning. The Boston-based investing behemoth, the nation’s largest 401(k) provider, announced on Thursday that the average 401(k) balance it administers reached $75,900 at the end of the third quarter.
It’s the highest level reached since the company began tracking the data 12 years ago. The ending balance represents an increase of 4.2% from the end of the previous quarter and an 18% percent increase over one year prior when it was $64,303.
Fidelity’s analysis is seen as a bellwether of the larger 401(k) industry because of its sizable market share in the space. The company manages assets of $1.7 trillion in assets and currently oversees 12 million 401(k) accounts in 20,200 corporate defined contribution plans. It shows that average annual employee contributions grew 7.3% over the past five years to $5,900 at the end of the third quarter, up from $5,500 ending the third quarter 2007.
Meanwhile, average annual employer contributions–commonly called a company match–rose to $3,420 at the end of the third quarter, up 19% percent since the third quarter 2007, when it was $2,880.