You can look at the glass as half full or empty, it’s just your view on things. The average 401(k) account plunged by nearly $10,000 in the first quarter of 2022, according to Fidelity, thanks to the market and runaway inflation.
Fidelity, which oversees more than 35 million retirement accounts, released data that found the average 401(k) account balance decreased to $121,700 in the first quarter of 2022 from $130,700 in the fourth quarter of 2021.
IRA accounts dropped to $127,100 in the first quarter from $135,600 in the fourth quarter of 2021 and 403(b) accounts fell to $107,600 in the first quarter from $115,100 in the fourth quarter of 2021.
However, the numbers are a dramatic increase from a decade ago. In the first quarter of 2012, the average 401(k) was $74,900, the average IRA was $75,300, and the average 403(b) was $58,000.
Most importantly, the rate at which people are saving has soared. The savings rate for 401(k)s, which includes contributions from employers and employees, reached a record level of 14%, just marginally below the 15% Fidelity recommends saving.