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Member, Beacon International Group, Ltd.
Aided by the bull equities market, employees’ 401(k) account balances hit a record average of $74,900 at the end of the first quarter this year, according to an analysis released Wednesday.
In the 12-month period ending March 31, the average account balance jumped nearly 12%, while account balances rose an average of 4.8% in first quarter of this year compared with the final quarter of 2010 according to Boston-based Fidelity Investments.
At year-end 2010, the average account balance was $71,500, which was the previous record high since Fidelity began tracking the data.
Account balances in 401(k) plans have made a huge recovery from the plunge in the equities markets, which began in 2008.
At $74,900, the average account balance is about 58% higher than the end of the first quarter in 2009, when the average account balance was $47,500.
Still, the figures show volatility of 401(k) plan balances. At the end of the first quarter of 2008, the average account balance was $64,900. One year later, the average had fallen nearly 27% to $47,500.
The study analyzed the account balances of about 11 million participants in nearly 16,500 plans serviced by Fidelity.
A summary of the findings is available at www.fidelity.com.