The stock market has been in the doldrums for more than a year, and that fact might have you discouraged about the prospects of building a solid nest egg.
However, if you take a longer view, you might see that despite the recent market turmoil, things look a lot better for your retirement savings than you probably imagine.
In the past decade, savers have seen their retirement accounts grow by a substantial amount, according to new research from Fidelity Investments.
Fidelity recently released its fourth-quarter and year-end 2022 analysis of the state of the more than 43.4 million IRA, 401(k) and 403(b) retirement accounts on the company’s platform.
As part of this analysis, the investment company also highlighted how much richer savers have grown during the last decade. Following are those numbers.
Individual retirement accounts
At Fidelity, the average IRA balance was $104,000 in the fourth quarter, an increase of 2% since the prior quarter ($101,900) and a jump of 36% since a decade prior ($76,700).
The average 401(k) balance at Fidelity was $103,900 in the fourth quarter, an increase of 7% since the prior quarter ($97,200) and up 34% from a decade before ($77,600).
Those with a 403(b) account — a type of retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations and also referred to as a tax-sheltered annuity (TSA) plan — at Fidelity also saw their portfolios grow in a big way.
The average 403(b) balance at Fidelity was $92,683 in the fourth quarter of 2022, an increase of 6% since the prior quarter ($87,400) and a rise of 56% over the past 10 years ($59,600).
How to increase returns in your portfolio
Regardless of where you are in your investment journey, there are things you can do today to help fortify your nest egg.
Money Talks News founder Stacy Johnson is a millionaire several times over, and he got there the old-fashioned way: by working hard and building wealth slowly over time.
Stacy often shares his insights about how to become a better saver and investor in his podcast. For example, late last year, he offered his list of “15 Money Moves for a Richer New Year.”
You can find more of Stacy’s podcasts on this website.
Another way to sharpen your money skills is to learn more about saving, investing and other aspects of day-to-day financial life. Money Talks News offers two courses than can help you increase your investing and saving knowledge: