FYI: Retirement account balances at Fidelity Investments dipped in the last three months of 2018, but investors weren’t to blame.
The average 401(k) balance was $95,600 in the fourth quarter of last year, down from a record $106,500 in the third quarter of 2018. Market volatility was mostly the reason for the 10% drop in 401(k) balances, and not because savers were pulling their money out of their accounts. Balances, for the most part, fell due to the market shake up, the company said. Other reasons for the lower balances include retirees using their funds for their intended purposes and the introduction of accounts from new and young employees starting to save from scratch.
Individual retirement accounts fell 11% from the last quarter, to $98,400, and 403(b) and tax exempt accounts dropped 10% during the same period to $78,700. About a fifth of workers had outstanding 401(k) loan balances, the lowest level since the second quarter of 2009. Fewer workers (9.4%) initiated loans as well.
Regards,
Ted
https://www.marketwatch.com/story/fidelitys-average-retirement-account-balances-dropped-the-reason-why-may-surprise-you-2019-01-31/print
