We media types – either part of the broad and awful alleged left-wing mainstream conspiracy, or those simpler folks working for industry media companies – do tend to have a fairly short attention span. It's just the nature of the news cycle.
But today saw one of those industry studies – the kind that are generated in the dozens, weekly, unlike any other business I've ever covered in a quarter-century of reporting and writing – go virtually viral.
Fidelity Investments released its own data on 401(k) accounts and the news was suprisingly good – the highest balances in the history of Fidelity's tracking balances, and a solid 4 percent gain in accounts in the third quarter.
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That's the kind of news that might even make it onto your evening newscast. Where they have mentioned 401(k)s … and retirement in general … six times in the last nine years.
All incredulous commentary aside, it is indeed good news. Sort-of.
Fidelity's numbers show that the average 401(k) balance reached an epic $75,900 at the end of the third quarter, up from the last time the averages were tracked.
Fidelity claims it's a solid rise in the S&P 500 that's driving the revenue recovery.
That's also boosted companies' abilities to offer better matches, which are now just over $3,400 per participant per year, up 19 percent from 2007 – back when times were still good.
It's a patch of positive news that hopefully signals the beginning of an upward cycle and some long-awaited restoration of the existing value in those retirement pots.
That's the sort-of part of the equation. $75,900 is not going to get you much of anywhere, unless you're 29 and you've got a long career ahead of you. It's largely unlikely most 29-year-old workers are also going to stay with the same employer – or even in the same career – for another 35 years.
Everyone else, as has been said over and over again, needs to save more, starting as soon as possible. Some real value gains in those accounts might help convince the disbelievers that this is not such a bad idea after all. Keep your fingers crossed.
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