Benefits September 27, 2007

EBRI: Younger Participants Saw Greatest Growth in 401(k) Balances

September 27, 2007 (PLANSPONSOR.com) - Average participant 401(k) balances for all age groups increased 67% from 2003 to 2006, according to figures from the Employee Benefit Research Institute (EBRI).
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The EBRI data showed the average account balance among the group of consistent participants increased nearly 79% from 1999 to 2006, rising from $67,760 to $121,202 – an annual growth rate of 8.7% over the seven-year period.

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Among participants who have had accounts at least since year-end 1999, participants who were younger or had fewer years of tenure experienced the largest increases in average account balances – 1,004% from year-end 1999 to year-end 2006, a 40.9% annual growth rate, according to EBRI. However, the average account balance of older participants showed more modest growth. The average account balance for participants in their 60s increased 29% – a 3.7% annual growth rate.

By age group, the EBRI data indicated:

  • Balances increased from $13,950 to $28,248 from 2003 to 2006 for participants in their 20s.
  • Balances increased from $66,490 to $108,262 from 2003 to 2006 for participants in their 40s.
  • Balances increased from $98,811 to $148,927 from 2003 to 2006 for participants in their 50s.
  • Balances increased from $127,008 to $157,727 from 2003 to 2006 for participants in their 60s.

For the August 2007 EBRI Issue Brief visitwww.ebri.org .

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