Are your employees starting to pump more into their retirement accounts? A national retirement-account administrator reports a new upward trend in contributions.
Fidelity Investments analyzed the 401(k) accounts it oversees — all 11.2 million of them — and reported in the most recent quarter that about 5% of participants increased their contributions, while 3% lowered theirs.
That’s good news for 401(k) managers, since in the previous three quarters, Fidelity reported that more people decreased their contributions than increased them.
More good news: Fidelity noted that its average 401(k) balance rose 13.5% in the second quarter, to $53,900.
On the down side:
- Fidelity’s research shows the portion of companies that have cut or eliminated contributions rose to 9% in the second quarter, from 7% in the first quarter.
- While T. Rowe Price Group reported that the number of employers that have cut or ended matches has held steady at 7 percent since the spring, Vanguard Group said the portion of companies that have cut contributions to plans doubled to 10% in the second quarter from 5% in the first quarter.