Retirement Account Balances Suffer in Q3 Market Volatility, Fidelity Reports

Only 4.9% of 401(k) account holders and 16% of IRA customers made changes to their asset allocation in the third quarter, Fidelity reported.

The average total 401(k) contribution amount dipped slightly in the third quarter, to $2,610 from $2,770 in the second quarter — consistent with $2,670 in the 2014 third quarter.

The average 401(k) contribution rate rose to 8.2% from 8% a year ago.

IRA contributions also remained consistent in the third quarter. IRA account holders added an average of $1,260 to their accounts, compared with the average contribution amount of $1,270 a year ago.

"Recent Fidelity research with the Stanford Center on Longevity found that nearly three out of four pre-retirees cited 'concern over economic uncertainty' as a possible reason to continue to work later in life, so we understand that market changes are a big concern for pre-retirees," Doug Fisher, senior vice president at Fidelity Investments, said in the statement.

"Periods of major market volatility, whether up or down, give investors an opportunity to assess their overall financial wellness, which should include a review of their retirement savings and asset allocation, as well as extend to a more basic assessment of their financial health, including overall family spending and budgeting."

Fidelity said Roth accounts had become increasingly popular in recent years. At the end of the third quarter, nearly 75,000 IRA account holders had converted to a Roth IRA. Roth IRA conversions by Fidelity customers increased by 36% since last year's third quarter.

According to the statement, 12% of 401(k) account holders in their late 20s are currently contributing to a Roth 401(k), up from 9% five years ago.

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