As the job market weakens, anybody working in the personal sector can at the least be ok with their 401(okay) thus far this 12 months.
Strong inventory efficiency and a median financial savings rate of 14% (worker contribution plus match) pushed the common 401(okay) steadiness to a brand new excessive in the third quarter, in line with information launched Thursday by Fidelity, the largest recordkeeper of office retirement plans.
As of September 30, the common 401(okay) steadiness hit $144,400, up 5% from the prior quarter, primarily based on Fidelity’s evaluation of 24.8 million participant accounts in its database. The median steadiness, in the meantime, was simply $33,500. That’s the stage beneath which half of all contributors’ balances fell.
At the different finish of the steadiness spectrum, 654,000 accounts — one other all-time excessive, up from 595,000 in the second quarter — had a steadiness of $1 million or extra. The median steadiness for that group was $1.42 million.
Of course, the million-dollar-plus accounts solely characterize 2.64% of the Fidelity universe. Within that cohort, 388,000 of the accounts are held by Gen Xers, who’re subsequent in line to retire. Another 654,000 Gen Xers had balances between $500,000 and $999,000, in line with Fidelity.
Meanwhile, girls of all ages who’ve repeatedly participated in a 401(okay) for 15 years had a median steadiness of $501,100 — which is the first time this cohort’s common crossed the $500,000 mark, Fidelity famous.