Despite a global pandemic and record-setting layoffs, U.S. employees managed to save more for retirement than years prior.
Fidelity Investments, one of the nation’s largest retirement account providers, found that one in three individuals increased their retirement contributions last year. Although 6.3% of retirement plan participants took withdrawals in 2020 to cope with the financial difficulties of the pandemic, the majority of employees actually ramped up their contributions. On average, people using Fidelity plans had a quarterly savings rate of 7.3% for 403(b) accounts and 9.1% for 401(k) accounts — both record levels, company executives say.
