Fidelity released figures reporting that the average 401(k) balance hit a record high in 2013 with the average adult having $89,300 in savings, according to CNN Money. Adults nearing retirement, ages 55-64, also reported record savings of $165,200.Continue Reading
These figures were up from a previous high in 2012 of an average of $77,300 for all adults, reports AARP. Adults ages 50 and over reported higher balances than the average, with $111,900 for ages 50 to 54, $134,600 for ages 55 to 59, $133,100 for ages 60 to 64 and $136,800 for ages 65 to 69. This continues an upward trend, as 2012 was up 12 percent from the previous average of $69,100 in 2011.
The majority of these gains can be attributed to the health of the stock market, as the three major indexes realized growth in excess of 20 percent year over year, according to CNN Money. One-third of the increase in savings can also be attributed to worker contributions.
Investors that invest in an individual retirement account in addition to a 401(k) report even larger retirement savings balances. Fidelity announced average combined balances of $225,600 in 2012 and $261,400 for individuals with both IRA and 401(k) investment accounts.
The average 401(k) contribution is 8 percent of annual earnings, reports AARP. When employer matching is included, the rate rises to 12 percent.Learn more about Financial Planning