If you want to see the benefits of saving early for retirement, and saving often, look no further. 401(k) giant Fidelity Investments reviewed 19.8 million 401(k) plan accounts and released a Q2 report that revealed the average 401(k) account rose 24% to a record balance of $129,300.
What’s more? Among workers who’ve held their 401(k)s for at least a decade, the figure is just over $400,000, or more than three times the average. And for those who’ve held their 401(k) plans for 15 years or more, the figure is $512,000.
These averages are not just results of seniority. Fidelity calculates that even millennials who’ve held their 401(k)s for at least 15 years now have an average balance of just under $280,000.
“In 401(k) accounts especially, 85% of the balances that increased (in the second quarter) were due to market performance,” explained Jessica Macdonald, Fidelity’s vice president of thought leadership.
Adding to the growth in funds was the contributions of employees that rose to a record high in the second quarter. The average employee put 9.3 percent of their earnings into their 401(k) account, according to Fidelity.
“The best thing you can do is keep your money in your account and let it grow,” Macdonald said. “Plan to tap into it for your actual retirement.”
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