According to a recent article by CNNMoney’s Jessica Dickler, the average American’s 401(k) balance reached its highest point in 10 years. In 2009, the average 401(k) balance was $64,200; 2010 saw this number jump an amazing 11.5 percent with the average balance coming in at $71,500. An improving economic climate, according to the article, proved to be the main contributor to renewed retirement savings efforts, leading to the year’s strong leap.
Dickler also points out that 401(k)s have become the preferred retirement savings vehicle in recent years. In addition, they say more than half of the 51 million Americans who contribute to Fidelity plans are only making between $20,000 and $40,000 a year, proof that a significant number of people are making retirement savings a priority even when making a relatively modest salary.
Have you been putting away more money in your 401(k) over the past year? Are you using any Ally Bank products for additional retirement savings?