7 New Findings on Workers' Retirement Account Balances: Fidelity

Strong contribution levels and positive market conditions have driven average retirement account balances to the third-highest average on record, according to a new quarterly analysis published by Fidelity Investments. While smaller than the previous two quarters, the growth rate in the second quarter of 2024 was substantial — even as investors had to navigate significant bouts of volatility triggered by apprehension about inflation, interest rates and the potential for recession. Other points of concern have included an apparent cooling in the labor market and the persistence of some big geopolitical risks, not to mention that U.S. markets tend to get jittery ahead of a presidential election. However, with Jerome Powell, the Federal Reserve chair, signaling that a rate cut is likely in September, investors are hoping that the U.S. economy can avoid a recession and allow balances to continue their upward trajectory. Here are seven findings drawn from Fidelity's new report.