401(k) Retirement Savings

SOURCE www.cnn.com
Fidelity Investments analysis shows rise in number of 401(k) accounts with balances over $1 million, average balance of $1.616 million. Gen Xers saving for at least 15 years have an average balance of under $600,000. Auto-portability feature introduced to help those with small balances preserve retirement savings.

Key Points

  • Average balance of $1.616 million in accounts with over $1 million
  • Auto-portability feature introduced to help preserve retirement savings

Pros

  • Rise in number of 401(k) accounts with balances over $1 million
  • Average balance of accounts increasing

Cons

  • Many participants have balances far below $1 million
  • Lower-income employees may cash out 401(k) savings with small balances