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Fidelity® Q3 2021 Retirement Analysis: Retirement Savers "Stay the Course" in Spite of Stock Market Swings and Ongoing Economic UncertaintyFidelity Investments®, a market-leading workplace benefits company and America's No. 1 IRA provider1, today released its quarterly analysis of savings behaviors and account balances for more than 30 million IRA, 401(k), and 403(b) retirement accounts. Despite the significant swings in the stock market, the analysis found there were minimal changes to the average retirement account balance with a slight increase to the average IRA balance and moderate decline in both the average 401(k) and 403(b) balances. The majority of retirement savers continued to take a long-term approach by maintaining their contribution levels to workplace savings and not making significant changes to their asset allocation. This is especially true among the record 1.4 million Gen Z (born between 1997-2012, as defined by Pew (News - Alert) Research) retirement investors now saving with Fidelity. "One of the most important retirement savings behaviors we highlight with customers is to keep a long-term approach and not make changes to a retirement savings strategy based on short-term market events," said Kevin Barry, president of Workplace Investing at Fidelity Investments. "The stock market and economic landscape will shift many times throughout a lifetime, so taking a consistent approach, making steady contributions and maintaining your asset allocation are key to reaching your retirement savings goals." Highlights from Fidelity's Q3 2021 analysis include:
Average Retirement Account Balances
"Over the past two years, we are seeing the next generation of investors rise up and get more engaged with their finances, leading to more than 4.7 million new retail accounts6 on Fidelity's platform, and it's encouraging to see so many young people planning for their future," said Kelly Lannan, vice president, Young Investors at Fidelity Investments. "Whether saving in an employer's workplace plan or contributing to a Roth IRA, these accounts can be a great way to start saving for retirement. Gen Z and Millennials may get an undeserved rap that they are mainly 'living in the now' but we know from our Fidelity Spire app users7 that retirement is the number one long-term goal they are trying to reach." Despite market swings and economic uncertainty, retirement savers 'stayed the course' Fidelity's third quarter analysis found that, despite the stock market uncertainty in Q3 and the continuing economic impact of the pandemic, the majority of retirement savers did not make any changes to the asset allocation within their account and the percentage of outstanding 401(k) loans continues to trend downward. In addition, while most 401(k) savers maintained their contribution rate, some individuals took steps to boost the amount their savings rate:
For more information on Fidelity's Q3 2021 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
# # # Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Target (News - Alert) Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed. Diversification and asset allocation do not ensure a profit or guarantee against loss.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
Fidelity Distributors Company LLC
National Financial Services LLC, Member NYSE, SIPC
1003587.1.0 © 2021 FMR LLC. All rights reserved. 1 Based on Cerulli Associates' "Top-10 IRA Providers by AUA, 4Q 2018 - 4Q 2020." 2 Fidelity business analysis of 11.8 million IRA accounts as of September 30, 2021. 3 Analysis based on 23,700 corporate defined contribution plans and 20.2 million participants as of September 30, 2021. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are non-qualified defined contribution plans and plans for Fidelity's own employees. 4 Based on Fidelity analysis of 10,300 Tax-exempt plans and 7.4 million plan participants as of September 30, 2021. Considers average balance across all active plans for 5.4M unique individuals employed in tax-exempt market. 5 Gen Z, as defined by Pew Research, as individuals born between 1997-2012. 6 Internal Fidelity data, customers 18-35 years old in 2020 and through Q3 of 2021. 7 Based on internal Fidelity data. As of October 22,2021, the average age of the Fidelity Spire user is 26 years old.
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