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Gen Y Most Properly Allocated 401(k) Participants

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Fidelity’s second-quarter analysis of its 401(k) accounts showed the number of employers offering a Roth 401(k) savings option rose to 35% from only 10% five years ago. More than half (55%) of Fidelity 401(k) participants are in plans that offer a Roth 401(k), up from 15% five years ago.  

In addition, employee and employer 401(k) contributions continued to increase in the second quarter, compared with the same period in recent years. The average contribution from employees rose to $1,660 during the second quarter, up $30 from the same period last year and up $150 from the same period in 2009.    

The average employer contribution climbed to $950 during the second quarter of this year, up $30 from the same period last year and up $90 from the same period in 2009.  The average 401(k) balance dropped slightly to $72,800 at the end of the second quarter, down 2.5% from the end of the first quarter.

 

Rebecca Moore
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