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While the majority of people are juggling multiple financial
priorities, Fidelity analysis shows that more and more have
prioritized saving for retirement. From increased participation in
Defined Contribution (DC) plans to double digit growth in the
percent contributing to an Individual Retirement Account (IRA), it’s
clear more people than ever are focused on creating a secure
financial future.
DC plan
balances
With the recent market activity,
balances have increased slightly
by 1% in the last 12 months.
However, the overall trend
remains positive while the
majority of employees continued
to contribute to their plan2.
ADDITIONAL INSIGHTS2:
• Auto-enrolled employees who
have been invested in their DC
plan for 10 years, now have an
average balance of $111,600.
• Average balances for female
participants have more than
doubled in the last 10 years,
reaching $81,300 in Q1 2019.
Withdrawals
While the goal is to save and
invest for the long-term, things
like credit card debt, student
loans and the cost of housing can
make it tempting to withdraw
savings, diminishing the power of
compound interest over time.
ADDITIONAL INSIGHTS:
• Cash out rates among younger
employees remain high, with 42%
under age 30 taking a full distribution
when changing jobs2.
• The most common reason for taking
a hardship withdrawal is to prevent
eviction/foreclosure. Only 2% of savers
take a hardship annually2.
IRA balances
7.4 million people are saving and
investing for retirement through
9.4 million IRA accounts where
the number of accounts has
grown by 6% and average
balances have increased 1.8%
between Q1 2018 and Q1 2019.
ADDITIONAL INSIGHTS6:
• Female millennials owned IRA
accounts increased by 19.5%
between Q1 2018 and Q1
2019.
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