Facebook
RE/MAX 440
Diane Minguez
1110 North Broad Street
Lansdale  PA 19446
 Phone: 267-575-6818
Office Phone: 215-362-2260
Cell: 267-575-6818
Fax: 267-354-6882 
dminguez@remax.net
Diane Minguez
< Back to My Blog

Study: The Value of a Consistent Retirement Saving Strategy

October 20, 2016 1:09 am


Reports about the retirement outlook for Americans have been less than encouraging since the recession. Recent data, however, show that the tide may be turning, this time favorably.

The average 401(k) balance, according to a study by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI), has grown in the last four years, through both workers’ and employers’ contributions, as well as gains. The average 401(k) balance among consistent contributors is now $130,493. “Consistent” contributors are defined as “those who remained active in the same 401(k) plan for the four-year period covering year-end 2010 through year-end 2014.” The median 401(k) balance among consistent contributors, comparatively, grew to $56,653. Approximately one in five consistent contributors have more than $200,000 in their current employer’s 401(k) plan.

These data are evidence that consistency is essential to wealth-building for retirement, says Sarah Holden, ICI’s senior director of Retirement and Investor Research.

“By studying the experience of workers who participate consistently across several years, this study shows more accurately the extent to which steady, paycheck-by-paycheck saving and compounding investment returns can help workers accumulate a sizable retirement nest egg,” Holden said in a statement.

Source: Employee Benefit Research Institute (EBRI)
 

Published with permission from RISMedia.

Commenting is closed