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United States : Fidelity s Average IRA Contributions Climb To Over $4,000 An All-Time High

July 24, 2014



Fidelity Investments today released its second annual analysis of over seven million Individual Retirement Accounts (IRAs), which revealed that average contributions for tax year 2013 reached $4,150i , a 5.7 percent increase from tax year 2012 and an all-time high. Average balances were $89,100, a nearly 10 percent year-over-year increase.

Saving more, paying off debt and spending less were the top three New Year financial resolutions cited in a recent Fidelity studyii and our IRA analysis indicates that Americans are taking those financial resolutions seriously, said Ken Hevert, vice president, Fidelity Investments. The fact that IRA contributions are up across all age groups is a positive indication that many people are indeed committed to saving for retirement by putting at least a portion of what they earn into tax-advantaged vehicles such as an IRA.

The findings from Fidelity, the No. 1 provider of IRAs to investorsiii , shows investors 50 years of age and over continue to save the most in Traditional and Roth IRAs. Younger investors, those in their 20s, 30s and 40s, are adopting strong savings behaviors and have made strong increases with overall average contributions 3.9 percent, 6.7 percent and 6.2 percent, respectively from 2012 tax year to 2013 tax year.

Additionally, average contributions to Roth IRAs continue to outpace average Traditional IRA contributions on both ends of the age spectrum. Younger investors, who are more likely to be eligible to contribute directly to a Roth IRA, can take advantage of tax-free growth potential and withdrawals, while older investors utilize the savings vehicle when they are no longer able to contribute to a Traditional IRA as a result of reaching age 70 .

i January 1, 2013 through April 30, 2014 ii This study presents the findings of a telephone survey conducted among two national probability samples, consisting of 2,027 adults, 18 years of age and older. Interviewing for this CARAVAN Survey was completed on November 7-11, 2013 by ORC International, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. For more information on Fidelity s New Year Financial Resolutions Study, an executive summary and infographic can be found on Fidelity.com. iii Cerulli Associates The Cerulli Edge Retirement Edition, fourth quarter, 2013 based on an industry survey of firms reporting total IRA assets administered for Q3 2013.


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Source: TendersInfo (India)


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