Guidant Financial Group Blog

It was reported today that the average 401(k) balance rose to an all-time high of $74,900 at the end of the first quarter.

Fidelity Investments, the nation's No. 1 provider of workplace retirement savings plans and individual retirement accounts, began tracking balances 13 years ago. They note in their report that nearly one in 10 participants increased his or her deferral rate during the first quarter, which is the largest amount of employees doing so since 2006, when Fidelity started monitoring those figures.

Why the increase?

Apparently, there's something to be said for employee education on the matter. Those who participated in Fidelity's programs designed to guide employees through the 401(k) planning process showed desirable account results.

They have identified four key factors contributing to retirement readiness: Enrollment Increases, Deferral Rates Growth, Asset Allocation Improvements and a Drop in Cash-Outs.

Executive Vice President of Fidelity Investments Carol Clancy confirms, "Engaging participants over the long term can dramatically increase healthy financial behaviors and the chances to achieve a more successful retirement."