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First-To-Market Fidelity® Analysis of Investors Saving in Both 401(k)s and IRAs Finds Combined Average Balances Top $212,000
More Americans Taking Control of Their Saving and Investing Goals – Many Seeking Help from FidelityBOSTON – Fidelity Investments®, the No. 1 provider of Individual Retirement Accounts (IRA) and 401(k) plans1, today unveiled its first-to-market analysis of investors with both types of accounts, providing a more comprehensive view of Americans’ retirement savings. The findings show a combined average balance of $212,600. Investors on the verge of or in retirement – between 65 and 69 – have a combined average balance of $359,000. The analysis also highlights the sharp increase in the number of Americans seeking guidance as they work to achieve their saving and investing goals.
Fidelity reviewed two of the primary American retirement savings building blocks – IRA2 and 401(k) account balances and contributions – both individually as well as customers who are using both savings vehicles. The findings below are based on the firm’s retirement investor/participant base, the largest in the industry3.
“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. “As investors strive to take more control of their personal economy in an unpredictable world, Fidelity’s investment professionals work closely with them to understand their priorities and goals, and help them create a tailored plan that can fit their personal situations.”
This new analysis provides a more accurate retirement savings picture, and it indicates that significantly more investors are turning to Fidelity to help them with their retirement planning. Fidelity reviewed four years of guidance trends, highlighting the increase in demand for help from both workplace participants and individual investors. Key findings include7:
“The economic downturn of the last several years combined with an aging working population has resulted in greater, more complex needs on the part of our 401(k) participants,” said James M. MacDonald, president, Workplace Investing, Fidelity Investments. “Fidelity is committed to providing the guidance, education and help that may lead to better outcomes and to addressing the broad-ranging needs of the individuals we serve. These services include one-on-one sessions with our investment professionals across the country, individualized assistance for both basic and deeper planning needs, robust online education and tools, and apps for mobile devices such as smartphones and tablets to help monitor and manage savings and investing strategies.”
Fidelity Continues to Innovate to Help Americans Better Manage Their Savings
Fidelity’s unique position as the No. 1 provider of IRAs and 401(k) plans9, gives the firm unparalleled insight into the types of guidance, help and strategies individual investors and workplace participants need at different ages and stages of life. Whether an investor is just getting started or transitioning into or living in retirement, Fidelity is committed to providing the fundamental building blocks to help him or her get and stay on the right path, including one-on-one guidance with award-winning10 planning tools. This includes programs that help educate and empower investors as they save for retirement, such as Retirement Quick Check, which helps investors create and monitor a plan, and Portfolio Review, which determines how to best allocate assets.
Another key component to achieving a holistic retirement strategy is developing an appropriate income strategy. To help meet this need, Fidelity launched an innovative retirement income program last year for its customers, including seminars, one-on-one guidance with trained investment professionals and Fidelity’s Income Strategy EvaluatorSM, a proprietary tool designed to help investors transition from a lifetime of saving to generating income in retirement.
Fidelity also offers a comprehensive suite of retirement income planning resources designed to meet the distinct needs of its broker and advisor clients. These resources include white papers, sales ideas, shareholder-approved materials, as well as sophisticated proprietary and third-party Web-based planning tools.
About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.5 trillion, including managed assets of $1.6 trillion, as of January 31, 2012. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
1 Cerulli Associates Quantitative Update Retirement Markets 2011 and Cerulli Edge Retirement Edition, Q4 2011