sharon sanders
Editor-in-Chief & President
[h=1]Fidelity[SUP]?[/SUP] Q3 2019 Retirement Analysis: Volatility Drives Slight Dip in Average Account Balances, but the Majority of Retirement Savers “Stayed the Course”[/h] November 14, 2019 08:30 AM Eastern Standard Time
BOSTON--(BUSINESS WIRE)--November 14, 2019 -- Fidelity Investments[SUP]?[/SUP], the market leading workplace benefits company and one of the largest and most diversified financial companies in the industry, today released its quarterly analysis of retirement savings trends, including account balances, contributions and savings behaviors, across more than 30 million retirement accounts. Market conditions in Q3 caused average account balances to dip slightly in the third quarter after reaching near-record levels in Q2.
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Workers May Own Too Much Stock in Accounts, Exposing their Savings to Unnecessary Risk[SUP]5[/SUP]
Although an increasing number of workers are leveraging target date funds to help keep their asset allocation on track and help manage the risk to their retirement savings, Fidelity’s Q3 analysis found that many 401(k) account holders had stock allocations higher than those recommended[SUP]5[/SUP] for their age group. Fidelity compared average asset allocations to an age-based target date fund and found nearly a quarter (23.1%) of 401(k) savers still have a higher percentage of equities than recommended, including 7% who are 100% equity. Among Baby Boomers, the over-allocation of stock was even higher – 37.6% have too much equity, including 7.9% who are in 100% equities. This is in addition to the 5% of Boomers who have zero exposure to equities in their 401(k).
https://www.businesswire.com/news/h...Q3-2019-Retirement-Analysis-Volatility-Drives
BOSTON--(BUSINESS WIRE)--November 14, 2019 -- Fidelity Investments[SUP]?[/SUP], the market leading workplace benefits company and one of the largest and most diversified financial companies in the industry, today released its quarterly analysis of retirement savings trends, including account balances, contributions and savings behaviors, across more than 30 million retirement accounts. Market conditions in Q3 caused average account balances to dip slightly in the third quarter after reaching near-record levels in Q2.
snip
Workers May Own Too Much Stock in Accounts, Exposing their Savings to Unnecessary Risk[SUP]5[/SUP]
Although an increasing number of workers are leveraging target date funds to help keep their asset allocation on track and help manage the risk to their retirement savings, Fidelity’s Q3 analysis found that many 401(k) account holders had stock allocations higher than those recommended[SUP]5[/SUP] for their age group. Fidelity compared average asset allocations to an age-based target date fund and found nearly a quarter (23.1%) of 401(k) savers still have a higher percentage of equities than recommended, including 7% who are 100% equity. Among Baby Boomers, the over-allocation of stock was even higher – 37.6% have too much equity, including 7.9% who are in 100% equities. This is in addition to the 5% of Boomers who have zero exposure to equities in their 401(k).
https://www.businesswire.com/news/h...Q3-2019-Retirement-Analysis-Volatility-Drives