Retirement account balances have not only bounced back from 2008 lows but are at an all-time high.
If you were old enough to remember the Great Recession of 2008, you likely watched the stock market plummet, had a hard time finding a job and saw your parents’ retirement savings evaporate, in many cases, overnight. But 10 years after the crash, the economy is looking better than ever, and so are retirement account balances.
Average retirement account balances reached record highs this month and have nearly doubled in value over the past decade, according to a recent report from Fidelity Investments. The average 401(k) balance is at an all-time high of $106,500, and the average IRA balance increased to $111,000.
In fact, there are now 41% more 401(k) and IRA millionaires than there were last year, with 187,400 people sitting on seven-figure balances in their retirement accounts.
Retirement account balances will typically be a lot higher if you’re nearing the end of your career. But that doesn't mean your parents and their generation are the only ones with cause to celebrate.
Contribution rates for female investors reached a record high of 8.5% of their salaries. And Fidelity reports millennial women are leading the charge, with this group increasing their IRA contributions by 19% since last year.
www.valuepenguin.com
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