November 24, 2010

THE GRAPES OF MATH:

401(k) Balances Still Below 2007 Peaks (Emily Brandon, November 24, 2010, US News)

The typical 401(k) account now holds a considerably higher balance than it did in 2008. But many 401(k) balances still have not surpassed their 2007 peaks.

The median 401(k) account held $59,381 at the end of 2009, up from $46,338 in 2008, according to an Employee Benefit Research Institute and Investment Company Institute analysis of 4.3 million consistent 401(k) participants between 2003 and 2009. But that’s still slightly less than the $60,858 the median retirement saver had in 2007.

Young retirement savers with fewer years on the job experienced the largest increases in account balances between 2003 and 2009. The value of 401(k) accounts held by investors in their 20s rose 587 percent over the 6-year period because initial account balances were small and new contributions produced significant growth. Older participants with longer job tenures showed more modest nest egg growth. The average account balance among 401(k) participants in their 60s increased 44 percent during the same time period, mostly due to investment returns on higher initial balances.


That was easy.

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Posted by Orrin Judd at November 24, 2010 5:16 PM
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