Not that I would want you to keep up with “the Joneses,” but are you saving for retirement? Don’t be left out. Retirement savings is in full swing right now.

Fidelity Investments, considered the top provider of individual retirement accounts (IRAs) in the United States, recently released its 2021 first-quarter analysis of retirement accounts (tinyurl.com/287wuecn), with the headline being that average balances among more than 30 million IRA, 401(k) and 403(b) retirement accounts reached record levels for the second consecutive quarter.

That’s especially noteworthy considering the financial challenges related to retirement savings that occurred during the pandemic. Some companies temporarily suspended matching contributions for 401(k)s, while a recent MagnifyMoney poll (tinyurl.com/physhf46) indicated that nearly 48% of those surveyed who had a retirement savings account either stopped saving during the pandemic or decreased their retirement contributions.

Yet according to the Fidelity analysis, the average IRA balance was $130,000, a 31% increase from the first quarter of 2020. The average balances for 401(k)s ($123,900, up 36%) and 403(b)s (a record $107,300, up 42%) also saw a big advance in 2021 from the first quarter of 2020.

Kevin Barry, the president of workplace investing at Fidelity, said in a statement that “individuals can’t control how the market performs from quarter to quarter or year to year. What they can control is establishing and sticking to consistent, positive savings behaviors.”

Fidelity noted that one factor for the growth in IRA contributions during the first quarter of 2021 involved the time of the year, as some investors sought to make a tax-deferred contribution ahead of the deadline for filing their 2020 tax returns. Overall, contributions were made to 1.3 million IRA accounts in 2021’s first quarter, a gain of 52% from the same quarter in 2020.

Another positive trend involved younger people saving for retirement, as 26% of overall IRA contributions in 2021’s first quarter were being made by investors under the age of 35 (climbing from 23% in the first quarter of 2020). I would like to see that percentage continue to grow.

I’m also a fan of Roth IRAs, which offer tax-free withdrawals in retirement. According to Fidelity, the money flowing into Roth IRAs made up 60% of all IRA contributions for the first quarter of 2021.

Good news was also in evidence when it came to employer contributions. According to Fidelity, 95.5% of individuals on its 401(k) platform had some form of contribution to their account in the first quarter, with 83.6% making a contribution to their 401(k) and receiving an employer contribution; 7.3% making a contribution but not receiving an employer contribution; and 4.5% receiving only some type of employer contribution.

According to Fidelity, the average 401(k) employer contribution rate was 4.6% (with the average amount contributed being $1,720). The most popular formula for 401(k) matches? It continued to be a 100% matching contribution for the first 3% of an employee’s contribution, with a 50% match for the employee’s next 2%. In my view, that is “free money” for retirement savers, something everyone needs to take advantage of.

With financial challenges still being felt by many people, it might seem somewhat surprising that the percentage of workers who had an outstanding 401(k) loan declined to 17.5% in the first quarter of 2021 from 19.7% in the same quarter of 2020. Only 1.6% of 401(k) savers started a new loan during the first quarter of 2021, down from 2.4% a year earlier, while the percentage of workers who made a withdrawal from their 401(k) (including hardship withdrawals) dropped to 2.4% in the first quarter of 2021 from 3% the year prior.

In a separate study, Fidelity asked respondents how they used the money from their most recent 401(k) or 403(b) loan or withdrawal. Forty-four percent cited paying down or off debt, while 37% used it for home expenses (including buying a home or making improvements to one). Interestingly, 60% chose the loan option because they preferred borrowing from themselves over borrowing from others.

Borrowing from yourself reminds me of an old adage that I’ve mentioned before, one that is appropriate to those who are successful in saving for retirement: Pay yourself first. If the pandemic has caused you to move away from investing in your retirement, try to get back to it as quickly as you can.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

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Seniors will want to know about a resource that regulators published June 15, 2021, to help train financial firms to implement the Senior Safe Act. The regulators involved in the project are the Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA).

The rationale for the Senior Safe Act (which can be read in its entirety here: tinyurl.com/wcde5tax), which was signed into law in 2018 as part of the Economic Growth, Regulatory Relief, and Consumer Protection Act, was essentially to help prevent the financial exploitation or abuse of seniors. How? By giving the financial industry a method of reporting suspected abuse to regulators. But there were strings attached. Firms had to train their employees on what to look for -- which meant articulating exactly the type of behavior that rose to reportable exploitation.

That question is answered in the training program that was just released. Called “Addressing and Reporting Financial Exploitation of Senior and Vulnerable Adult Investors” (tinyurl.com/2nhtj68s), the idea behind the program is to train employees on what to look for, how to help and how to prevent the exploitation of these at-risk investors.

The reason you need to know about the program is this: It lays out how to identify people who could be victims of financial exploitation. That’s what I’d like you to focus on, both for yourself and for those older friends and relatives whom you might be helping out with their financial affairs.

Here are the red flags cited in the program: If someone you know is displaying these behaviors, he or she could be a victim of a scammer or financial predator:

* “Uncharacteristic and repeated cash withdrawals or wire transfers.

* “Appearing with new and unknown associates, friends, or relatives.

* “Uncharacteristic nervousness or anxiety when visiting the office or conducting telephonic transactions.

* “Lacking knowledge about his, her, or their financial status.

* “Having difficulty speaking directly with the client or customer without interference by others.

* “Unexplained or unusual excitement about an unexplained or ‘too good to be true’ windfall; reluctance to discuss details.

* “Sudden changes to financial documents such as powers of attorney, account beneficiaries, wills, or trusts.

* “Large, atypical withdrawals or closing of accounts without regard to penalties.

* “Frequent password reset requests or new online account access requests.”

For additional red flags, you’ll want to read “A Guide for Developing Practices and Procedures for Protecting Senior Investors and Vulnerable Adults from Financial Exploitation” (tinyurl.com/7btcb4zx), by the NASAA.

If you would like to view the training presentation, you can access it on the FINRA website at tinyurl.com/274nr6a2.

As I mentioned in last week’s column when discussing World Elder Abuse Awareness Day, protecting older Americans from abuse is a cause that is worthy of attention. That protection is even more effective when both industries and individuals are working toward that goal.

What can you do if you suspect a friend or family member might be a victim of financial exploitation?

That depends on the circumstances and how close you are to the victim. For example, if the victim is a close relative, it would be appropriate to engage in a conversation with that relative directly to see if you can stop any further damage. If I were in that situation, I would close accounts and appoint an attorney-in-fact to act on the victim’s behalf. It’s never a one-size-fits-all solution since each situation will be different. You may not be able to identify the perpetrator, who in the worst cases could be an employee, a banker or financial adviser, or even a friend or family member.

If the situation is dire, with fraud already committed, the Justice Department’s National Elder Fraud Helpline (1-833-372-8311) can help. The hotline has resources for reporting the situation. Also, each state has a version of adult protective services, providing more resources for reporting potential scams. A national listing can be found at the nonprofit National Adult Protective Services Association (tinyurl.com/225zmzra).

Red flags call for action. This is not the time to ignore the situation.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

I sometimes wonder about the need to name a “day” to draw attention to a cause. However, in this case, the cause is one that needs attention: protecting older Americans from abuse. June 15 is World Elder Abuse Awareness Day, launched in 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization, according to the University of Southern California’s Center for Elder Justice (tinyurl.com/3k6y3phy).

There is no question that scammers prey on older people. The FBI reports that every year, “millions of elderly Americans fall victim to some type of financial fraud or confidence scheme, including romance, lottery, and sweepstakes scams, to name a few.” (See the link to “Scams and Safety: Elder Fraud” at the end of this column).

Here is an example of a scam that can attract the attention of an innocent senior as it relates to Social Security. Someone poses as a Social Security employee and contacts the target with a story that implies that the senior’s Social Security number is linked to a crime.

There are many other scams, some dealing with COVID. For example, scammers call seniors to sell them vaccines, even though COVID vaccines are free. Then there is the “grandparent scam,” which entails criminals posing as a relative -- usually a child or grandchild -- claiming to be in immediate financial need. The “charity scam” involves scammers pretending to be legitimate charities that are seeking “donations.” Investment scams can be anything from pressure to buy quickly to promising high returns at little risk.

If you have elderly relatives, watch for any of these signs of potential fraud:

* A sudden reluctance to discuss financial matters

* Changes in spending habits, or in a will, trust or beneficiary designation

* Checks made out to “cash”

* Unexplained loans

* Signatures on checks that don’t look like the senior’s

* A new friend who is “overly protective”

* A sudden change of feelings about somebody

Keep in mind that seniors may be embarrassed or reluctant to talk about these topics.

And keep in mind that one technique fraudsters use is to isolate their victims from their families and friends. Consider also the added impact of social isolating we have been experiencing during the pandemic.

This may be a good time to engage your older relatives in a talk about scams.

Share some examples and some signs of untoward behavior. Ask them how they would react if contacted by phone, email, mail or in person by someone they don’t know for a request for money or information. Also share some resources, such as these:

• FINRA Foundation report, “Exposed to Scams: What Separates Victims From Non-Victims?” (tinyurl.com/kw6f8u8).

• “What fraud and scams should I know about,” on the Social Security website at ssa.gov/coronavirus.

• “Scams and Safety: Elder Fraud” from the FBI at tinyurl.com/ny8wnv2p.

• “Social Isolation and the Risk of Investment Fraud” (tinyurl.com/yfwpshp6), which is a combined effort by the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA) and the Securities and Exchange Commission’s Office of Investor Education and Advocacy to raise awareness.

World Elder Abuse Awareness Day serves as an important reminder about protecting older people. Everyone needs to stay up-to-date about the many scams that are out there, and if you have elderly friends and relatives, make sure that they know you are there to help them if something like this happens to them.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION