A USA Today story says that 401(k) investing, according to Fidelity Investments is at a 12-year high.æ
At the end of the first quarter, the average 401(k) balance hit $74,900, a 12% jump from a year ago. That marks the highest level since Fidelity started tracking account balances at the end of 1998. Account balances had plummeted to $41,300 in the third quarter of 2002.
According to the article, the increase in 401(k) savings does not dispel retirement woes. Considering that 56% of workers say that they have saved less than $25,000, it is not surprising.
Many more companies automatically enroll employees, but most of them have opted for a 3% savings rate when most plan sponsors believe that workers need at least 10% or more of their earnings for retirement savings.
It’s a good sign. Just don’t stop investing.