Employees increased 401(k) contributions in 2011
By Paul Wilson
ProWEB Wire (Industry News)
Employees increased contributions to their 401(k) plans last year from an average of $5,680 to $5,750, according to a new study by Fidelity Investments.
Plan participants saved an average of 8 percent of their salaries in 2011, while the average 401(k) balance rose nearly 8 percent compared with the third quarter to $69,100, Fidelity said.
Meanwhile, 82 percent of plan participants included in the survey received employer contributions last year through company match or profit sharing, up from 79 percent in 2010.
In 2011, around one-quarter of participants invested the entirety of their 401(k) assets in target date funds, while approximately 50 percent of participants ages 35 and younger did so, the study said.
Ten percent transferred funds between investment options within their 401(k) plans, with the majority of these exchanges moving money into more conservative holdings, according to Fidelity.