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Workplace Retirement Plans

All articles tagged with #workplace retirement plans

finance1 year ago•1 min saved

"401(k) Millionaire Ranks Soar by 41% in 2023, Fidelity Reports"

Fidelity Investments reported a 41% increase in the number of 401(k) accounts with balances of at least $1 million in 2023, with the average account balance for this group reaching $1,551,300 in the fourth quarter. Strong market performance, steady savings rates, and employer contributions contributed to the growth, with the average 401(k) balance rising to $118,600 at the end of the fourth quarter. However, despite the positive trend, a significant portion of the US working population still does not participate in employer-sponsored retirement plans.

via CNN|

#401k #fidelity-investments #finance

finance2 years ago•2 min saved

The Shocking Decline in Average American Retirement Savings

The average workplace retirement plan balance for American investors fell from $144,280 to $111,210 in 2022, as the stock market experienced significant losses. The median plan balance dropped to $23,818, the lowest in a decade, with a median annual return of -14.7%. The participation rate in workplace savings plans slightly decreased, while the average contribution rate slipped. However, most workers stayed the course and did not make drastic changes to their investments. The percentage of workers eligible for workplace plans with fewer than two years of service increased, indicating the effectiveness of automatic enrollment plans. Despite the challenges, markets have shown improvement in 2023, with the S&P 500 index up over 14% by the end of June.

via Yahoo Finance|

#finance #financial-planning #investment-losses

personal-finance2 years ago•2 min saved

The Looming Retirement Savings Crisis: Solutions and Shortfalls.

The retirement savings gap in the US could create a $1.3 trillion economic burden through 2040, according to a study by the Pew Charitable Trust. State-run retirement savings plans could help close the gap, with initial data from states already offering the program showing participants saving anywhere from $105 to $190 per month. Without changes, 61% of elderly households are expected to have an annual income below $75,000 in 2040, and roughly half of working households may struggle to maintain their pre-retirement standard of living in their golden years due to limited access to workplace retirement plans.

via CNBC|

#economic-burden #personal-finance #retirement-savings