401(k) account balances continue to bounce back, reaching new record highs, according to the latest quarterly statistics from Fidelity. At the height of the economic downturn in early 2009, the average account among Fidelity clients stood at $46,200. At the end of the first quarter of 2013, this figure had jumped to $80,900, representing an 8.4% increase over the same period last year. Fidelity attributes the growth to continued contributions by employees and employers, as well as strong equity markets. The average balance for those age 55 and older reached $255,000 at the end of this year's first quarter, almost double the figure from four years ago.
This optimism is tempered, however, by the worries of a large part of the population. According to a Prudential study, Turning Employees Into Lifetime Savers, "It's not that Americans don't view retirement as a priority. . . . Across age cohorts, American workers face a gap between what their belief in the importance to save for retirement is and their ability to do so." The Prudential report suggests that the solution to saving more for retirement should "take into account their individual financial lives and needs."
It appears that for those who have been able to save for retirement, things are looking better, but there remains a need to address the underlying inability for many others to achieve this goal as well. There are many who want to save more for retirement, but for whom the financial obstacles simply feel overwhelming.
This optimism is tempered, however, by the worries of a large part of the population. According to a Prudential study, Turning Employees Into Lifetime Savers, "It's not that Americans don't view retirement as a priority. . . . Across age cohorts, American workers face a gap between what their belief in the importance to save for retirement is and their ability to do so." The Prudential report suggests that the solution to saving more for retirement should "take into account their individual financial lives and needs."
It appears that for those who have been able to save for retirement, things are looking better, but there remains a need to address the underlying inability for many others to achieve this goal as well. There are many who want to save more for retirement, but for whom the financial obstacles simply feel overwhelming.
