Fidelity Investments reported this week that released its clients’ overall 401(k) and Individual Retirement Account (IRA) 401(k) and IRA account balances increased in Q4 2015, but were down year over year. After decreasing in Q3 2015 due to market volatility, average retirement account balances recovered in Q4 2015, but were still below the averages from Q4 2014.
The average IRA contribution was $1,500 in Q4 2015, up from $1,260 in Q3 but down from $1,660 in Q4 2014. The average total 401(k) contribution, which includes both employee and employer contributions, was $2,540 in Q4 2015, down slightly from $2,610 in Q3 but up from $2,440 in Q4 2014. During 2015, employers contributed an average of $3,610 to 401(k) accounts through profit sharing or company match.
As of the end of Q4 2015, 25% of total 401(k) assets on Fidelity’s platform were held in target date funds, and 67% of Fidelity 401(k) account holders had at least some of their savings in a target date fund. Among Millennials, 63% had all of their retirement assets in a target date fund at the end of Q4. The use of Fidelity’s professionally managed account portfolios continued to increase in 2015, growing by 19% since 2014.
In early January, Fidelity responded to six million customer contacts in a single day, one of the busiest days on record. Shareholder anxiety related to market volatility generated the high call volume, Fidelity said in a release.
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