Dive Brief:
- Fidelity research shows that the average 15-year retirement savers have $331,200 in their accounts, up from $43,900 in 2001, reports Employee Benefits News.
- Fidelity also looked at the kinds of investments retirement savers were making. The research shows that of the 15-year savers, 73% had their holdings in equities. It also found that 55% of those with 401ks had market returns and 44% had returns from employer-employee contributions. Of the savers using target-date funds, 44% invested 100% in them, while 69% put only some of their money in these accounts.
- Fidelity’s research shows that millennials are more comfortable with investing and believe they’ll have enough to live on in retirement. Nearly 50% of millennials think this positively, compared with 30% of Baby Boomers and 20% of GenXers. Only seniors, at a little over 50%, beat out millennials.
Dive Insight:
Employees’ increase in investments, based on Fidelity’s research, seem to show that they understand the importance of getting into the employer’s 401k plans, making contributions over time to see their investments grow and investing in something other than cash.
With millennials making up the bulk of the workforce, employers might not have to educate them about the need to prepare for retirement as much as previous generations. A recent study found that six out of 10 millennials say they are willing to sacrifice pay for more secure retirement benefits, clearly showing that saving is on their minds.
