Despite economic uncertainty, individual contributions to retirement accounts remained strong in the fourth quarter, according to Fidelity Investment's latest quarterly analysis of retirement savings trends released Thursday.
The average quarterly savings rates for 401(k) and 403(b) savings accounts reached record levels, hitting 9.1% and 7.3%, respectively, Fidelity found.
When combined with employer contributions, the total savings rate for 401(k) accounts was 13.5%, while the total savings rate for 403(b) accounts was 11%.
Average account balances also swelled to record highs. The average 401(k) account balance increased to $121,500 in the fourth quarter, up 11% from the previous quarter and up 8% from a year ago. Meanwhile, average 403(b) account balances jumped to a record $106,100, a 13.9% increase from 2019.
"The stock market results in Q4 played a part in boosting average account balances to record levels, but we're encouraged to see how positive savings behaviors among our retirement investors also contributed to increased balances," Kevin Barry, president of Workplace Investing at Fidelity, said in a news release.
The analysis was based on more than 30 million IRA, 401(k) and 403(b) retirement accounts on Fidelity's platform as of Dec. 31, 2020.