Despite the ups and downs of the labor market, one thing has held steady: employees’ commitment to funding their
Fidelity revealed record rates of retirement savings during 2021 in their latest trend report. Their data showed that the average 401(k) account balance was a record high of $130,700, and 40% of savers actually increased their account contributions last year.
“Investors continued to stay focused on the key fundamentals of retirement savings,” Kevin Barry, president of workplace investing at Fidelity Investments, said in a release. “By making regular contributions to retirement accounts, not cashing out savings when they change jobs and taking advantage of their employer's contributions, individuals were able to keep their savings on track as we head into 2022.”
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Prioritizing retirement is becoming increasingly important for
Regardless of age, employees are eager for
“By having a financial wellness or financial planning benefit, it allows employees to marry and match their personal situation with what employers are offering,” she says. “Sometimes employers are hesitant to bombard people with emails, but if you miss somebody at the right time and the right moment, they might not even realize that these benefits are available to them.”
Employees who engage in their
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Less than 9% of employees turn down this auto enrollment option, signaling that workers are eager for the extra savings boost. DeRusso says employees should take advantage of these benefits and take a long view of their retirement — while now may be a better time to save more, be open to adjusting down the road.
“It’s about balance — save and enjoy life as you're living it. Then look around a couple of times a year and ask yourself if you’re on track,” she says. “Are your goals still the same? Did you change employers and now have different benefits available to you? You have to keep an eye on it and be realistic.”