Fidelity® Q4 2020 Retirement Analysis: Despite Ongoing Economic Uncertainty as a Result of the Pandemic, Contributions to Retirement Accounts Remained Strong, Helping Boost Account Balances to Record Levels
Fidelity Investments®, a market-leading workplace benefits company and America's No. 1 IRA provider1, today released its quarterly analysis of retirement savings trends, including account balances, contributions and savings behaviors, across more than 30 million IRA, 401(k), and 403(b) retirement accounts.
Despite ongoing economic uncertainty, individual contributions to all three retirement account platforms remained strong in Q4, which helped boost average retirement account balances to record levels for the quarter. And while ongoing financial challenges created by the global pandemic drove a slight increase in the number of withdrawals under the CARES Act in Q4, the amount withdrawn was consistent with withdrawals earlier in 2020.
"The stock market results in Q4 played a part in boosting average account balances to record levels, but we're encouraged to see how positive saving behaviors among our retirement investors also contributed to increased balances," said Kevin Barry, president of Workplace Investing at Fidelity Investments. "Taking a long-term approach to retirement savings, which includes consistent savings efforts and managing asset allocation, can help investors weather the economy's ups and downs. Last year was challenging and we still may have rough patches ahead, so it's more important than ever to stay the course and keep focused on the key steps that will help investors reach their retirement goals."
Highlights from Fidelity's Q4 2020 analysis include:
Women investors see significant progress with increasing balances, contribution rates
Women investors, which represent roughly 40% of Fidelity's 401(k) platform and 70% of Fidelity's 403(b) platform, saw solid gains in 2020 despite some unique challenges as a result of the global pandemic. Recent Fidelity research6 found that nearly 4-in-10 working women (39%) are actively considering leaving the workforce or reducing their hours due to increased caregiving responsibilities - however, Fidelity's Q4 analysis identified several positive aspects of women's retirement savings efforts:
"Despite the unprecedented challenges posed by the pandemic, we continued to see women investors stay engaged and continue to take the steps to keep their retirement savings moving in the right direction," continued Barry.
For more information on Fidelity's Q4 2020 analysis, click here to access Fidelity's "Building Financial Futures" overview, which provides additional details and insight on retirement trends and data.
About Fidelity Investments
Fidelity's mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $9.8 trillion, including discretionary assets of $3.8 trillion as of December 31, 2020, we focus on meeting the unique needs of a diverse set of customers: helping more than 35 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 institutions with investment and technology solutions to invest their own clients' money. Privately held for more than 70 years, Fidelity employs more than 47,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
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1 Fidelity is America's No. 1 IRA provider, as per Cerulli Associates' The Cerulli Report-U.S. Retirement Markets 2020, based on an industry survey of firms reporting total IRA assets administered for Q2 2020.