For the fourth consecutive quarter, retirement account balances hit all time highs, according to Fidelity Investments. Fidelity’s third quarter analysis of 401(k) and IRA balances found average balances increased 10 percent over the last year and continue to rise.
The average 401(k) balance rose to $99,900, while the average IRA balance climbed to $103,500. Fidelity says the increase is due to strong stock market performance and people setting aside more money for retirement. The average 401(k) contribution rate was 8.5 percent in the third quarter, which Fidelity reports is the highest percentage in nearly 10 years.
The amount contributed to IRAs year-to-date increased 12 percent.