Fidelity Investments reported this week that average 401(k) account balances surged to a 10-year high at the end of last year.

The average 401(k) account balance rose to $71,500 at the end of 2010, reaching a 10-year high since Fidelity began tracking the data based on the industry's largest participant base of 11 million 401(k) accounts. For participants who were continuously active for the past 10 years, their average balance increased to $183,100 at the end of last year from $59,100 at the end of the fourth quarter 2000.
Average participant deferrals remained at 8.2 percent for an eighth straight quarter. For a seventh straight quarter, more participants increased their total deferral rate than decreased (6.1 percent versus 3 percent respectively).

America Saves Week is Feb 20-27. The campaign boosts efforts to get individuals to save and employers to educate workers on retirement plans. According to the American Society of Pension Professionals & Actuaries, the recent economic downturn has emphasized the need for financial education, increased saving, and better retirement planning by all Americans. More Americans save by contributing to their company sponsored retirement plan than any other vehicle.Data from the Employee Benefit Research Institute estimates more than 70 percent of moderate-income earners with access to employer-sponsored plans participate in those plans. These workers are 14 times more likely to save as compared to those workers not covered by an employer plan.

"ASPPA members witness firsthand the need for a focus on savings--they are the retirement plan professionals helping working Americans save for retirement as they administer, service, or advise defined benefit and defined contribution plans. Saving at work through a qualified plan has been successful at creating retirement savings for millions of workers. The challenge is to extend workplace savings opportunities to even more workers. ASPPA will continue to advocate for broader availability of employer-sponsored retirement savings plans to improve retirement security for all American workers," said Brian Graff, ASPPA executive director and chief executive officer.

Instant Insights /

Fidelity: 401(k) balances hit 10-year high

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