Retirement Balances Rise to Record Levels, Fidelity Finds
401(k) and IRA account balances reached record levels, finds Fidelity Investments newest analysis of retirement accounts.
The data from 2017 accounts found the average 401(k) balance increased to $104,300 and the average IRA balance rose to $106,000. Also, there were a larger number of retirement accounts that reached $1 million -- 150,000 401(k) accounts at the end of 2017 as compared to 93,000 from the year before. The number of investors with $1 million in their IRA accounts rose to 152,000 in 2017 as compared to 109,000 in 2016.
In light of these record balances, Fidelity shares some tips to keep your retirement plans on track; 1) Check the percentage of stocks in your retirement account -- make sure you are comfortable with the mix you have in your account. 2) Think twice before tapping your retirement account. Taking a 401(k) loan could be a financial mistake. The move may even reduce your contribution rate. 3) Consider target date funds and managed accounts. Fidelity says nearly eight million of their 401(k) savers leverage a “do it for me” investment option.