Retirement Savings: More Americans Than Ever Have $1 Million Or More
Do you think saving for retirement is just too tough? Think again. The number of people with 401(k) balances of at least $1 million hit a record 150,000 at the end of 2017 in plans run by Fidelity Investments…
From the Canada News Group archive. This article dates from Apr 12, 2018 and is preserved as first published.
Do you think saving for retirement is just too tough? Think again. The number of people with 401(k) balances of at least $1 million hit a record 150,000 at the end of 2017 in plans run by Fidelity Investments. Likewise, the number of Fidelity-run IRAs with retirement savings balances of $1 million or more hit a record 152,000.
And if $1 million seems out of reach for you — at least for now — don’t worry, because those million-dollar balances were part of a broader pattern of retirement savings balances overall growing to record highs.
Your retirement savings balances can join in on the fun — if you take six steps designed to maximize growth in retirement accounts, recommended by Meghan Murphy, a Fidelity 401(k) expert.
- Start early.
- Invest the yearly maximum.
- Invest smartly. If you can’t afford the maximum, at least aim for a contribution amount that will trigger the largest company match offered.
- Invest for growth.
- Stick to your plan. Do that by rebalancing periodically.
- Use target date funds. That’s especially important if you can’t make appropriate investment decisions for yourself or don’t want to try.
How Retirement Savings Grew
The record balances in Fidelity-run retirement accounts were reached as of the end of 2017 — shortly before the market’s recent volatility. While overall market direction can dampen your retirement accounts’ growth, once the market turns up again — and it always does — you want your accounts to be poised to benefit.
The record balances in Fidelity-run retirement accounts were reached as of the end of 2017 — shortly before the market’s recent volatility.
The 150,000 $1 million or more 401(k) balances were up from 93,000 just one year earlier. The number of $1 million IRA balances rose to 152,000 from only 109,000 a year earlier, at the end of 2016.
Overall average balances in Fidelity-run 401(k) accounts and IRAs were also up. By the end of the fourth quarter, 401(k) and IRA balances hit record highs as of Dec. 31 of $104,300 and $106,000, respectively. That put the average 401(k) balance above the $100,000 threshold for the first time, joining IRA balances in six-figure territory.
The rising stock market in 2017 helped accounts to grow.
