Average 401(k), IRA and 403(b) account balances reached new record highs in the third quarter, driven by consistent savings and positive stock market performance, according to a recent analysis by Fidelity Investments.
Despite continuing concerns about the strength of the economy, Fidelity said, both 401(k) and 403(b) participants were able to maintain steady savings rates through the third quarter.
The analysis showed that retirement savers, particularly younger ones, are increasingly interested in Roth savings vehicles. Roth IRAs continue to be the IRA of choice among younger savers.
“Retirement is about taking a long-term view, and the growing interest in Roth products shows that investors recognize their potential for tax advantages and long-term growth,” Robert Mascialino, president of wealth at Fidelity Investments, said in a statement. “By creating a plan and saving consistently, investors of all ages are positioning themselves for a financially secure retirement.”
The third quarter retirement analysis also spotlighted increasing adoption of “Auto Portability” — an automatic rollover service for employees moving small retirement savings from one employer to another. Fidelity noted that since October 2022, some 9,200 Fidelity 401(k) plans have adopted Auto Portability, resulting in $24 million in retirement savings preserved in the firm’s 401(k) plans.
See the gallery for seven statistics from Fidelity’s third-quarter analysis of the millions of retirement accounts on its platform.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.