Riding a resurgent stock market, the average 401(k) balance rose to a new high of $84,300 at the end of the third quarter, up 11.1 percent from a year ago, according to a new report from Fidelity Investments.
Employees who were continuously active in their 401(k) plan over the last 10 years saw the average balance rise 19.6 percent to $223,100 during the past 12 months, the research shows. For pre-retirees age 55 or older who have been active in their plan for at least 10 years, the average balance is now $269,500.
Fidelity also finds that with the increased adoption and availability of target date funds and managed accounts in workplace retirement plans, one out of three employees now use a professionally managed investment option for their 401(k) assets. Ten years ago, nearly all plan participants were “do-it-yourself” investors, those who made their own investment decisions.