By Jerry Geisel, Crain News Service
CHICAGO (Nov. 7, 2014) — Aided by a robust equities market, employees' 401(k) plan account balances are substantially higher than they were a year ago, according to an analysis released Nov. 6 by Fidelity Investments.
As of Sept. 30, employees' 401(k) plan account balances averaged $89,100, up from $84,300 a year earlier, Fidelity said in its analysis.
Account balances of longer-service employees were much higher than the average account balance, a result of more years of contributions and having earned investment income over a longer period of time.
For example, the average account balance of employees who have been continuously employed and participating in a 401(k) plan for the past 10 years was $241,800, at the end of the third quarter — up from $223,100 at the end of the third quarter of 2013 — and substantially higher compared with the $89,100 average account balance for all participants.
The analysis is based on 21,300 plans with 13.1 million participants.
This report appeared on the website of Crain's Business Insurance magazine, a Chicago-based sister publication of Tire Business.