Retirement account balances in 401(k) plans lost nearly one-quarter of their value in 2022, according to Fidelity’s analysis.
, the nation's largest provider of 401 plans. The financial services firm handles more than 35 million retirement accounts in total.balance also plunged 20% year over year to $104,000 in the fourth quarter of 2022.
"Given all the stresses in the world today, such as natural disasters and geo-political events, Americans continue to confront challenging times in our economy," Kevin Barry, president of workplace investing at Fidelity, said in a statement Thursday. Still, the majority of retirement savers continue to contribute, Fidelity found. The average 401 contribution rate, including employer and employee contributions, mostly held steady at 13.7%, just below Fidelity's suggested savings rate of 15%.
And despite the ongoing inflationary pressure straining most households, only 16.7% of plan participants had a loan outstanding from their 401 at the end of the year, Fidelity said.
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