The average 401 plan balance stood at $130,700 at the end of last year, a 7.6% increase from 2020, according to a review of 20.4 million accounts by Fidelity Investments. – Wall Street’s blockbuster gains in 2021 helped pad savers' retirement accounts, lifting the average balance on some popular investment plans to new highs.
The average balance for individual retirement accounts on Fidelity's platform also climbed to a record-high $135,600 as of the fourth quarter of 2021, up 5.9% from a year earlier. Why the big gap in gains between the S&P 500 and the average 401 or IRA? Because those plans typically hold a variety of asset classes, including foreign stocks, bonds and cash, for example, while the S&P 500 is comprised only of U.S.-based stocks.
Savers helped drive their returns last year by setting aside more of their pay for their retirement plans. Employee contributions to 401 plans averaged 9.4% by the end of 2021, up from an average of 9.1% a year earlier and an average of 8.9% at the end of 2019, Fidelity said.Boosting your contribution rate, even by 1%, can make a big difference over 10 or 20 years, assuming the saver remains employed and making contributions the entire time.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FoxBusiness - 🏆 458. / 53 Read more »