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).

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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