401(k) Account Balances Almost Tripled During This Period

401k, retirement, accounts, ICI

Image credit: © Iakov Kalinin | Dreamstime.com

Eight years is all it took. The average 401(k) plan account balance of “consistent 401(k) participants”—those who remained active in the same 401(k) plans from year-end 2010 through year-end 2018—almost tripled in that period.

The study, from the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI), found that average 401(k) plan account balances for consistent participants rose from $63,756 to $180,251 during this period, with all age groups registering significant increases.

“These results again confirm the potential of 401(k) plans and powerfully demonstrate why they are a vital savings vehicle,” Sarah Holden, ICI’s senior director of retirement and investor research, said in a statement. “Tracking the account balances of a consistent group of 401(k) participants provides evidence of the ability of the 401k system to build a significant nest egg, helping millions of Americans save for retirement.”

The study analyzed a subset of the 401k plan participants in the EBRI/ICI database—those who remained in the same 401k plans between year-end 2010 and year-end 2018. Studying consistent participants allows for a more in-depth analysis of the potential for 401(k) participants to accumulate retirement savings over time.

“The 401(k) system helps millions save and invest for their retirement,” Jack VanDerhei, EBRI’s director of research, said in a statement. “Analyzing data from consistent participants over the past eight years, we see how 401k accounts grew over time among all age groups to help these savers meet their financial goals.”

By the numbers

Exit mobile version