Fidelity’s Quarterly Retirement Snapshot: Average 401(k) Balance Hits Record Levels, IRA Balances Continue to Grow in 2014

The Q4 2014 retirement savings analysis from Fidelity Investments, the nation’s largest¹ provider of 401(k) accounts and Individual Retirement Accounts (IRAs), reveals:

• The year-end average 401(k) balance² was $91,300, a record high for 401(k) accounts. The average 401(k) balance is up 3% from the end of Q3 and 2% year-over-year.
• The average IRA balance was $92,200³, up 4% year-over-year.
• The average 401(k) contribution⁴ was $9,670, an increase of 4% year-over-year. The average IRA contribution in 2014 was $4,325, an increase of 2% year-over-year.
• The average savings rate increased to 8.1%, the highest saving rate since year-end 2011. When combined with employer contributions, the average employee savings rate was 12.2% of their salary in 2014.
• For employees in a 401(k) plan for 10 years or more⁵, the average balance was $248,000, up 11% year-over-year.
• Individuals continued to seek help with their retirement savings efforts. Over 2.8 million people reached out to Fidelity for help and guidance in 2014, an increase of 15% over 2013.

“A variety of economic conditions, such as lower unemployment and record-setting stock market performance, helped make 2014 a very good year for retirement savers. We continue to see American workers take positive steps when it comes to saving for retirement,” said Jim MacDonald, president, Workplace Investing, Fidelity Investments. “However, it’s important to remember to take a long-term approach to retirement savings, and not react to short-term market swings. The typical American worker will see markets go up and down many times during their career, so commitment to a long-term savings and investing strategy will put individuals in the best position to meet their retirement goals.”

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc., 500 Salem St., Smithfield, RI 02917

Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.

Past performance is no guarantee of future results.

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¹ Pensions & Investments, March 3, 2014, “The largest DC record keepers” and Cerulli Associates’ The Cerulli Edge®—Retirement Edition, fourth quarter, 2013 based on an industry survey of firms reporting total IRA assets administered for Q3 2013.

² All 401(k) data as of December 31, 2014 unless otherwise stated, and is based on our record kept corporate defined contribution plan base of 21,000 plans, including advisor plans and the Fidelity plan, and 13.1 million participants (who are actively employed employees or retired or terminated employees who still carry a balance), excluding tax-exempt employees.

³ Fidelity IRA data analysis as of December 31, 2014.

⁴ Average of combined employee and employer contributions, as of December 31, 2014.

⁵ Employees with a 401(k) balance and actively employed by their plan sponsor throughout the past 10 years.