Americans are saving more for retirement, but it may not be enough
The good news: Americans are saving more than they ever have for retirement.
The bad news: They’ll probably need to save even more.
Employees contributed an average of $2,370 per account to their 401(k) plans in the first quarter of 2019, a record level and 15% more than one year prior, according to Fidelity Investments, the Boston-based financial services firm that also manages retirement accounts. Employers also hit a record high with their own contributions to employee plans, partly from company matches and profit sharing plans, at an average of $1,780.
The average employee contribution rate was 8.7% in the first quarter, and the average employer contribution rate was 4.7% during the same time.
Overall balances also jumped in the first quarter, with 401(k) balances seeing an 8% increase to $103,700 between the fourth quarter of 2018 and first quarter of this year — but up only 1% year-over-year during the first quarter of 2018. Individual retirement account balances rose to $107,100 in the first quarter of 2019, 2% higher than during the same time last year. For 403(b) plans, the average balance increased to $85,800, also up 2% since the first quarter of 2018.
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