EBRI Report Shows that Regular 401(k) Savers Doing Well

The Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) have jointly issued a report showing that the average account balance among U.S. workers who consistently held 401(k) accounts from 1999 through 2005 increased 50% despite one of the worst bear markets since the Great Depression.

According to the study--“401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2005”--average account balances rose to $102,014 at year-end 2005 from $67,785 at year-end 1999 among participants who maintained accounts for the entire period.

“The data demonstrate the power of persistence and the impact it has on an individual’s ability to accumulate sizeable gains in a 401(k) account,” said ICI Senior Economist Sarah Holden, a co-author of the study.

The average account balance for consistent participants in their 60's rose nearly 12% over the same period.

Source: Employee Benefits Research Institute Press Release and Investment Company Institute Press Release (August 24, 2006)