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Retirement accounts hold record balances

Fidelity Investments exterior

NEW YORK (CNNMoney) — The recent stock run-up is doing wonders for retirement savings.

The average balance in a Fidelity Individual Retirement Account (IRA) rose 15% on an annual basis in the second quarter to $92,600 — an all-time high.

In the same period, the average balance in a Fidelity 401(k) account also set a record, up nearly 13% annually to $91,000.

The mutual fund giant credited 77% of the gains to a surging stock market, and 23% to employee and employer contributions.

Fidelity said the balance for employees who have been in a workplace 401(k) for 10 years rose 15% a year over the past decade to $246,200.

But even that balance is probably not enough to retire on. Fidelity recommends saving eight times your yearly salary.

Even more sobering, a 2013 study by the Employee Benefit Research Institute found that nearly half of all workers had less than $10,000 saved.

4 comments

  • Blackbeered

    You can be sure this isn’t lost on Democrats Schumer and Reid … who both want a progressive-rate “Excise Tax” on IRA [Conventional and Roths] … starting at 1%/yr on balances of $100,000 and rising to 5%/yr on balances over $10,000,000 … to shore up and expand the Social Security Disability programs.

    And this would be in addition to taxing the MRDs!

    • Robbie

      Seven years ago the big story was how much everyone’s portfolio had lost. The president at the time was, hostility’s have ended, were going to get bin laden, economy ruined George”mission accomplished” Bush.

      • manalishi

        A similar hit was taken in 2000 while the chad fiasco was in place. another at 911. Slick Willie had 1 as soon as he tool office and left Bush with one, I still here folks brag about how much they have made since Barry Soertoro took office. It mostly makes sense until they confess that it’s all tied up in IRA & 401k and is fully exposed to another “reset”. It;s not liquid till it;s in you hand.

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