Participants in corporate defined contribution plans serviced by Fidelity Investments of Boston are saving an average of seven percent of their income, Fidelity has found.
Three quarters of all eligible workers contribute to a defined contribution plan, the company found. Small company plans have higher participation rates (85 percent) than large company plans (64 percent), it found.
The average account balance for plans serviced by Fidelity is now $60,000, compared to $28,509 in 1994 and there are 11,000 401(k) millionaires serviced by Fidelity, the company said.
Industry-wide, assets in defined contribution plans have grown from $230 billion in 1989 to almost $1.5 trillion today, said Peter J. Smail, president of Fidelity Institutional Retirement Services Company, in a statement.
"In less than 20 years, the 401(k) has become a staple in American households," he said.