Fidelity Investments reported on Wednesday that its average 401(k) savings account held $103,800 at the end of the second quarter, down from $121,700 in April and $129,300 one year ago.
The trend was comparable for IRA savings accounts, with the average IRA holding $110,800 at the end of June, down 12.8 percent for the quarter and 17.9 percent from a year ago.
The number of people with no less than $1 million in their 401(k) accounts plunged 29 percent in the second quarter, and the number of IRA millionaires plunged 17 percent from a year earlier.
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Together, 401(k) and IRA millionaires accounted for roughly 1.7 percent of the 35 million savings accounts included in the study -- yet they are potential workers who are very close to retirement, meaning their savings levels are of paramount concern.
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The decline in savings levels reflected the broader drop in stock markets for the year's first six months, with the S&P 500 suffering its worst first half in 52 years, losing nearly 20 percent.
Markets have rallied in the third quarter, nonetheless, and the S&P is up over 13 percent since the end of June, meaning that disciplined investors have earned back a good chunk of their losses.
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Fidelity states that despite the volatility, many workers have made regular investments to grow the size of their nest egg, and total 401(k) savings levels are hovering at record highs.
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The investment giant further announced that the number of IRAs on its platform increased. The percentage of employees taking out emergency loans from their 401(k) accounts stayed low for the fifth consecutive quarter.
The total savings rate for the second quarter, which reflects a combination of employee and employee 401(k) contributions, clocked in at 13.9 percent of income, right below Fidelity's proposed savings rate of 15 percent.
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"Although many Americans are understandably concerned about the economy, record-high inflation and markets at this time, it's encouraging to see the prevailing emotion has been to stay calm and focused on one's retirement objectives," announced Kevin Barry, president of Workplace Investing at Fidelity Investments.
"Saving for retirement is a goal that is decades in the making, and there will naturally be many twists and turns. However, the best action savers can take to help achieve success is to consistently save and invest," he announced.
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