LOS ANGELES (AP) — Strong growth for stocks on Wall Street this year have helped juice gains for savers with retirement accounts.
The average 401(k) plan balance stood at $127,100 at the end of the second quarter, an increase of 13% from the same period last year, according to data from Fidelity Investments drawn from 24 million accounts.
The average balance in the April-June quarter was up just 1% from the first three months of the year, when the average 401(k) balance jumped 16.4% from a year earlier.
“Retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter, when contribution levels and average account balances reached record highs,” said Sharon Brovelli, president of workplace investing at Fidelity Investments.
The median 401(k) plan balance was just $29,200 at the end of the second quarter, an increase of 17% from a year earlier. The median figure tends to skew lower than the average because workers who recently enrolled into a 401(k) plan but haven't had time to build up a balance.
About 35% of Americans reported having a 401(k) or similar retirement savings plan in 2020, according to the Census Bureau.
Individual retirement accounts, or IRAs, also rose. The average balance was $129,200 by the end of the second quarter, an increase of 1% from the first quarter and up 14% from the second quarter last year, Fidelity said.
The retirement savings plans' gains came as the major stock indexes crushed multiple record highs amid a wave of enthusiasm over artificial intelligence developments that fueled demand for shares in Big Tech stocks, including chipmaker Nvidia, Meta Platforms, Microsoft and Amazon.
The benchmark S&P 500 index rallied to a roughly 15% gain through the first six months of the year. It has since added another 2.4% and is up about 17% as of Wednesday.
The savings rate, or how much savers set aside from their pay combined with contributions from their employer, also helped push up 401(k) plan balances. The savings rate was 14.2%, Fidelity said. That’s down slightly from 14.1% in the first quarter, but higher than the 13.9% rate in the second quarter last year.
For many savers, their growing nest eggs are proving too tempting not to tap early. Some 18.3% of employees with a 401(k) plan had a loan outstanding on their retirement account balance in the second quarter, Fidelity said. That's up from 17.2% in the same quarter last year.
FILE - Signs at the intersection of Wall Street and Broadway streets in New York, June 12, 2024. (AP Photo/Pamela Smith, File)
KYIV, Ukraine (AP) — Ukraine made a new call Saturday on the West to allow it to strike deeper into Russia after a meeting between U.S. and British leaders a day earlier produced no visible shift in their policy on the use of long-range weapons.
“Russian terror begins at weapons depots, airfields, and military bases inside the Russian Federation,” Ukrainian presidential adviser Andriy Yermak said Saturday. “Permission to strike deep into Russia will speed up the solution.”
The renewed appeal came as Kyiv said Russia launched more drone and artillery attacks into Ukraine overnight.
Ukrainian officials have repeatedly called on allies to greenlight the use of Western-provided long-range weapons to strike targets deep inside Russian territory. So far, the U.S. has allowed Kyiv to use American-provided weapons only in a limited area inside Russia’s border with Ukraine.
Discussions on allowing long-range strikes were believed to be on the table when U.S. President Joe Biden and British Prime Minister Keir Starmer met in Washington on Friday but no decision was announced immediately.
Ukrainian President Volodymyr Zelenskyy has been pressing the U.S. and other allies to allow his forces to use Western weapons to target air bases and launch sites farther afield as Russia has stepped up assaults on Ukraine’s electricity grid and utilities before winter.
He did not directly comment on the meeting Saturday morning, but said that more than 70 Russian drones had been launched into Ukraine overnight. The Ukrainian air force later said that 76 Russian drones had been sighted, of which 72 were shot down.
“We need to boost our air defense and long-range capabilities to protect our people,” Zelenskyy wrote on social media. “We are working on this with all of Ukraine’s partners.”
Other overnight attacks saw one person killed by Russian artillery fire as energy infrastructure was targeted in Ukraine’s Sumy region. A 54-year-old driver was killed and seven more people were hospitalized, Ukraine’s Ministry of Energy said.
A KAB aerial bomb also fell on a garage complex in the eastern city of Kharkiv, said regional Gov. Ihor Terekhov. No injuries were reported.
Meanwhile, officials in Moscow have continued to make public statements warning that long-range strikes would provoke further escalation between Russia and the West. The remarks are in line with the narrative the Kremlin has promoted since early in the war, accusing NATO countries of de-facto participation in the conflict and threatening a response.
Russian Deputy Foreign Minister Sergei Ryabkov told state news agency Tass on Saturday that the U.S. and British governments were pushing the conflict, which began with Russia's full-scale invasion of Ukraine in February 2022, toward “poorly controlled escalation.”
Biden on Friday brushed off similar comments by Russian President Vladimir Putin, who said on Thursday that allowing long-range strikes “would mean that NATO countries, the United States and European countries, are at war with Russia.”
Asked what he thought about Putin’s threat, Biden answered, “I don’t think much about Vladimir Putin.”
Russian and Ukrainian officials also announced on Saturday a prisoner swap brokered by the United Arab Emirates. It included 206 prisoners on both sides, including Russians captured in Ukraine’s incursion in the Kursk region.
The swap is the eighth of its kind since the beginning of 2024, and puts the total number of POWs exchanged at 1,994. Previous exchanges were also brokered by the UAE.
Both sides released images of soldiers traveling to meet friends and family, with Zelenskyy commenting, “Our people are home."
Elsewhere, Russia’s Defense Ministry said that 19 Ukrainian drones had been shot down over the country’s Kursk and Belgorod regions. No casualties were reported.
Follow AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine
A Ukrainian poses for a selfie as he is greeted after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
Ukrainians pose for a photo after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
Ukrainians pose for a photo after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
Ukrainians pose for a photo after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
A Ukrainian reacts after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
Ukrainians react after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
A Ukrainian serviceman, left, is greeted after being released in a prisoner exchange at an undisclosed location in Ukraine, Saturday Sept. 14, 2024. (Ukrainian Presidential Press Office via AP)
