401(k) plan account balances hit record high in 2012: Fidelity
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Boosted by a strong equities market, employees' 401(k) plan account balances surged to a record high last year, Fidelity Investments said in an analysis released Thursday.
The average 401(k) account balance was $77,300 at the end of 2012, up from $69,100 at year-end 2011, a nearly 12% increase, the Boston-based mutual fund provider and 401(k) plan administrator said.
About two-thirds of the 2012 increase was the result of stock market gains, while one-third was due to plan contributions, Fidelity said.
Account balances are much higher than a few years ago. As recently as year-end 2008, when balances were battered by the plunge in the equities market, the average 401(k) account balance was just $48,900.
Not surprisingly, the average account balance was directly linked to participants' age, a reflection, among other things, that older employees have contributed to their accounts longer than younger employees, while older employees' accounts have earned investment income for a longer period and tend to have higher disposable income.
For example, at the end of 2012, the average account balance of participants born between 1979 and 1991 was $15,400. By contrast, the average account balance of participants born between 1946 and 1964 was $120,400.
The analysis is based on 20,500 plans with 12 million participants.
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401(k) plan balances hit record high for 2012: Fidelity
Aided by strong investment results, employees' 401(k) average account balances hit a record $75,900 at the end of the third quarter of 2012, according to an analysis released Thursday.
