WASHINGTON — Finally! Some good news on employee participation in 401(k) plans.
After years of stagnation, the average 401(k) balance has gone from $67,760 at the end of 1999 to $121,202 at the end of 2006, according to a new study from the Employee Benefit Research Institute and the Investment Company Institute.
"The average 401(k) participant had a good year in 2006 because the majority of 401(k) assets are invested in equities and the stock market did very well last year," said study co-author Jack VanDerhei, Temple University and EBRI Fellow. "But year-to-year comparisons can vary sharply, which is why it's far more meaningful to look at how participants' accounts have performed over time. The data show that most workers who have continued to save and invest in their 401(k) retirement plans over the past several years have done well, despite ups and downs in the stock market."
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