PROVIDENCE – After three consecutive quarters of record highs, retirement account balances dipped slightly in the third quarter of 2021, according to a recent report by Fidelity Investments Inc.
Stock market swings were the primary driver behind declines in the average quarterly 401(k) and 403(b) balances, which were down 2% and 6%, respectively, over the prior quarter, according to Fidelity’s Q3 2021 Retirement Analysis.
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Despite economic factors influencing account balances, workers continue to sock away more money than ever, with average contribution rates reaching new records. Few savers changed their asset allocations, while the percentage of outstanding 401(k) loans also hit a record low of 17.3%.
Year-over-year balances also point to continued recovery, with double-digit percentage-point increases across 401(k), 403(b) and individual retirement accounts.
Younger workers are also saving more than ever before, with the number of Generation Z retirement savers reaching a record 1.4 million as of the third quarter – nearly double the amount from a year ago, the report stated.
A majority of 401(k) savers either maintained or increased their contribution rates in the third quarter.
The report is based on survey results of Fidelity’s 7.5 million plan participants as of Sept. 30, 2021.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
