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Benefits March 14, 2012
Analysis Shows Savings for Individuals with Both IRA and 401(k)
March 14, 2012 (PLANSPONSOR.com) – An analysis of Fidelity-administered accounts reveals how much more retirement savings are accumulated for investors with both an IRA and 401(k).
Reported by Rebecca Moore
Fidelity Investments’ analysis of its administered Individual Retirement Accounts (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, Personal Investing, Fidelity Investments.« SECOND OPINIONS: Employer Mandate, Waiting Period, and Auto-Enrollment Issues – Part I