Despite a global pandemic and record-setting layoffs, U.S. employees managed to
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
Employers played
“Last year was challenging and we still may have rough patches ahead, so it’s more important than ever to stay the course and keep focused on the key steps that will help investors reach their retirement goals,” Kevin Barry, president of workplace investing at Fidelity Investments, said in a statement.
Fidelity’s retirement analysis also found that women and Gen Z employees had higher retirement plan participation rates during the pandemic. Last year, women’s 401(k) savings rates climbed to 9%, up from 8.7% in 2019. Overall, women who’ve invested in Fidelity retirement plans for 10 years or more now have balances of more than a quarter of a million dollars.
Fidelity executives say employers should continue to encourage their workforce to engage in positive savings habits.
“Taking a long-term approach to retirement savings, which includes consistent savings efforts and managing asset allocation, can help investors weather the economy’s ups and downs,” Barry said.
