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Fidelity 401K Average Balance


Fidelity Investments, the nation's No. 1 provider of workplace retirement savings plans, today provided its 2008 State of the 401(k) update.

Based on analysis of Fidelity's 17,095 corporate 401(k) plans representing over 11 million participants, Fidelity found that in 2008 participants contributed an average of $5,600 (pre-tax earnings) to their 401(k) accounts, slightly higher than 2007 levels.

Despite ongoing contributions into 401(k) plans, unprecedented market declines resulted in the average workplace savings account balance dropping 27 percent in 2008 to $50,200 from $69,200 in 2007.

For those who did take a loan in 2008, the average amount was $8,400. Most employers offer a loan option in their workplace savings plan. Participants are usually allowed to borrow up to 50 percent of their vested balance or $50,000 whichever is less.

Posted on Wednesday, January 28 by Registered CommenterWise Owl in | Comments Off