Consistent Participation Key to 401(k) Account Balance Growth, Study Finds
According to a study by the Investment Company Institute (ICI) and the Employee Benefit Research Institute (EBRI), pension plan participants who regularly participated between 2010 and 2019 accumulated 401(k) plan account balances. important.
The average 401(k) plan account balance for regular participants increased every year from 2010 through the end of 2019, except for a slight decline in 2018, the two organizations said in a press release.
“Overall, the average account balance grew at a compound CAGR of 15.6% from 2010 to 2019, growing from $58,658 to $216,690 at the end of 2019,” the two groups said. “The median 401(k) plan account balance for regular participants grew at a CAGR of 18.8% over the period, reaching $108,433 at the end of 2019.”
Growth in plan account balances for regular participants has generally exceeded the growth rate for all participants in the EBRI/ICI 401(k) database. At the end of 2019, 53% of regular participants had account balances over $100,000, compared to about one-fifth of plan participants in the entire database.
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