Average 401(k) balances plunged 23% year-over-year

Per CNBC: The average 401k balance sank for the third consecutive quarter and is now down 23% from a year ago to $97,200, according to a new report by Fidelity Investments, the nation's largest provider of 401(k) plans. The financial services firm handles more than 35 million retirement accounts in total.

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The average individual retirement account balance also plunged 25% year-over-year to $101,900 in the third quarter of 2022.

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Still, the majority of retirement savers continue to contribute, Fidelity found. The average 401(k) contribution rate, including employer and employee contributions, held steady at 13.9%, just shy of Fidelity's suggested savings rate of 15%.

"The market has taken some dramatic turns this year," Kevin Barry, president of workplace investing at Fidelity, said in a statement. "Retirement savers have wisely chosen to avoid the drama."

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