Individual retirement account and 401(k) balances increased quarter over quarter in the first half, but fell from the year-earlier period, Fidelity Investments reported Tuesday.
The average 401(k) balance stood at $88,900 at the end of the second quarter, up nearly 2% from the end of the first quarter, but down 2.5% year over year.
The average IRA balance increased slightly from the end of the January-to-March period to $89,700, but was 7% lower than in the 2015 second quarter.
Fidelity based its analysis on 22,000 corporate defined contribution plans and 14.2 million participants, as of June 30. It said these figures included the advisor-sold market, but excluded the tax-exempt market as well as nonqualified defined contribution plans and plans for Fidelity’s own employees.
Fidelity’s IRA analysis was based on 8.2 million IRA accounts.
At the end of the second quarter, a record of some 45% of Fidelity retirement customers had all of their 401(k) assets in target-date funds and managed accounts.
Fidelity said these investors were less likely than others to react to market swings and economic events.
Its analysis showed that among savers with all of their 401(k) savings in a target date fund, only 1% had made an investment change within their account over the past 12 months. This compared with 13% of 401(k) investors with a “do it yourself” approach to retirement savings.
Fidelity’s second-quarter report said the average balance for millennial investors who had been continuously active in their 401(k) plan for 10 years reached a record $92,900, up almost 10% from $84,700 one year ago.
The overall balance for long-term savers reached $241,300 at the end of the second quarter, compared with $231,500 one year ago.
Fidelity reported that more than 400,000 people tapped its online guidance for information on how to increase their savings, establish an emergency fund and details on Social Security benefits, among other topics.