PROVIDENCE – Despite the economic downturn ushered in by the new coronavirus, workers continued to grow their retirement savings accounts in the second quarter, according to a new report by Fidelity Investments Inc.
The company’s second-quarter retirement analysis showed average account IRA, 401(k) and 403(b) balances all increased between 13% and 17% over the first quarter, though only 403(b) balances were higher than a year ago. Growing balances reflected increasing or matching contributions from both employers and workers, with more than three-quarters of workers benefiting from an employer match in the second quarter.
Everyone needs science. Science needs everyone.
The Amgen Foundation is guided by the belief that all students should have the opportunity…
Learn More
Other key highlights from the report include:
- Just under 90% of workers also contributed to 401(k)s in the second quarter, with 9% actually increasing their contribution rate and less than 1% stopping saving.
- Millennials continue to increase their preference for Roth IRAS, with 36% year-over-year growth in the number of contributing accounts and a 50% increase in dollars contributed.
- While 98% of Fidelity employers adopted federal Coronavirus, Aid, Relief, and Economic Security Act provisions allowing employees to tap into savings for COVID-19-related financial needs, just 3% of workers did so during the second quarter.
The quarterly report reflects analysis from 23,000 corporate defined contribution plans and 18.6 million participants as of June 30.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
