Americans are socking away record amounts of cash in their retirement investment accounts.
Even with rising inflation and concern about COVID-19 cases, average 401(k) account balances and savings rates reached all-time highs in the second quarter of 2021. That's according to Fidelity Investments, which also says the number of outstanding 401(k) loans decreased. Financial advisor Derrick Kinney, host of the Good Money podcast, says it's a sign of consumer confidence, even amid nationwide economic challenges.
“Given the fact that we are in some unprecedented financial times, now is a good time at least twice a year if you work with a financial advisor, for example, talk with that person,” Kinney said. “Make sure they know what you have, and how does it fit in with your overall financial picture.”
Fidelity Investments reports the average 401(k) had just under $130,000 in it by the end of June. That's a 24% jump from this time in 2021. IRAs are also faring better compared to last year. The average amount reached just under $135,000.
One other note from Fidelity: more Americans have a million dollars or more in their retirement accounts than ever before.