Benefits

Study 401(k) Plan Balances Surge

By Staff Report

May. 20, 2010

Buoyed by a resurgent equities market, the value of 401(k) plan account balances has regained ground from the low point just over a year ago, according to a study released Wednesday, May 19.


The average account balance jumped 41 percent to $66,900 as of March 31, up from $47,500 at the end of March 2009, said Fidelity Investments, a Boston-based 401(k) plan administrator and mutual fund provider.


As of March 2008, the average account balance was $65,000, a number that tumbled later in the year as the equities market plunged.


“Over the long run, the tried-and-true strategies work best when it comes to saving for retirement,” James M. MacDonald, president of Fidelity’s Workplace Investing unit, said in a statement.


“Even through all of the volatility of the past couple of years, participants who continued to save in their 401(k) accounts now have a positive return from the start of the downturn in 2008,” he said.


The study is based on a Fidelity analysis of 17,000 corporate plans with 11 million participants.


A summary is available online at www.fidelity.com.


 

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

 

 

What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Benefits

What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness