Pretax employee contributions to defined contribution plans increased by 1.4% to $3,187 in the first half of 2008, compared to $3,142 in the first half of 2007, according to a Fidelity Investments report.
According to the report, American workers average account balance fell 7.5% to $64,000 as of June 30, compared to $69,200 at the end of June 2007. The report cited the tumultuous capital markets as being responsible for the decline.
What were seeing in the first half of this year is similar to what we saw during the last period of market volatility that began in 2001, Scott B. David, president of retirement services, said in a news release. During that turbulent market period, workers also continued to fund their workplace accounts, recognizing the importance of saving for retirement even during a down market.
The report was based on analysis of Fidelitys 16,723 corporate defined contribution plans representing 11.5 million participants.