Posted on by

Retirees lost 23% of their 401(k) savings in 2022, Fidelity says



Share

Fluxfactory | E+ | Getty ImagesIn a year marked by stiff economic headwinds, retirement savers paid the price.Although the average 401(k) balance rose in the fourth quarter of last year, balances ended 2022 down 23% from a year earlier to $103,900, according to a new report by Fidelity Investments, the nation’s largest provider of 401(k) plans. The financial services firm handles more than 35 million retirement accounts in total.The average individual retirement account balance also plunged 20% year over year to $104,000 in the fourth quarter of 2022.”Given all the stresses in the world today, such as natural disasters and geo-political events, Americans continue to confront challenging times in our economy,” Kevin Barry, president of workplace investing at Fidelity, said in a statement Thursday.Still, the majority of retirement savers continue to contribute, Fidelity found. The average 401(k) contribution rate, including employer and employee contributions, mostly held steady at 13.7%, just below Fidelity’s suggested savings rate of 15%.And despite the ongoing inflationary pressure straining most households, only 16.7% of plan participants had a loan outstanding from their 401(k) at the end of the year, Fidelity said.More from Personal Finance:1 in 6 retirees are mulling a …

Read More