A cooling economy sets the stage for high-stakes jobs report

As the job market weakens, anyone working in the private sector can at least feel good about their 401(k) so far this year.

Strong stock performance and an average savings rate of 14% (employee contribution plus match) pushed the average 401(k) balance to a new high in the third quarter, according to data released Thursday by Fidelity, the largest recordkeeper of workplace retirement plans.

As of September 30, the average 401(k) balance hit $144,400, up 5% from the prior quarter, based on Fidelity’s analysis of 24.8 million participant accounts in its database. The median balance, meanwhile, was just $33,500. That’s the level below which half of all participants’ balances fell.

At the other end of the balance spectrum, 654,000 accounts — another all-time high, up from 595,000 in the second quarter — had a balance of $1 million or more. The median balance for that group was $1.42 million.

Of course, the million-dollar-plus accounts only represent 2.64% of the Fidelity universe. Within that cohort, 388,000 of the accounts are held by Gen Xers, who are next in line to retire. Another 654,000 Gen Xers had balances between $500,000 and $999,000, according to Fidelity.

Meanwhile, women of all ages who have continuously participated in a 401(k) for 15 years had an average balance of $501,100 — which is the first time this cohort’s average crossed the $500,000 mark, Fidelity noted.