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The Markets March 14, 2012
Analysis Shows Savings for Individuals with IRA and 401(k)
An analysis of Fidelity-administered accounts
reveals how much more retirement savings are accumulated for investors with
both an individual retirement account (IRA) and 401(k).
Reported by Rebecca Moore
Fidelity Investments’ analysis of its administered IRA and 401(k) plans finds a combined average balance of $212,600. Investors on the verge of or in retirement—ages 65 to 69—have a combined average balance of $359,000.
The Fidelity data showed the average balance for those individuals with a 401(k) only is $69,100 ($123,400 for those ages 65 to 69), and the average balance for individuals with an IRA only is $71,700 ($133,500 for those ages 65 to 69).
“This unique and integrated analysis covering more than 18 million accounts clearly underscores the importance of using both an IRA and 401(k) to help maximize long-term, tax-deferred growth potential and as essential complements to other retirement income sources such as Social Security, a pension, annuities and brokerage accounts,” said Kathleen A. Murphy, president of Personal Investing at Fidelity Investments.