RE/MAX 440
Margot Aronson Sells Homes, Realtor®, ABR, ASR, CDPE
margotaronson@live.com
Margot Aronson Sells Homes, Realtor®, ABR, ASR, CDPE
4092 Skippack Pike, P.O. Box 880
Skippack  PA 19474
PH: 610-306-7939
O: 610-584-1160
C: 610-306-7939
F: 267-354-6943 
Welcome Home from RE/MAX 440!
< Back to Margot's 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.

TwitterFacebookGoogleLinkedin