Study: Consistent 401(k) participation yields 6-figure balances for majority
A new study from the Investment Company Institute and the Employee Benefit Research Institute released Friday finds that participants who consistently participated between 2010 and 2019 accumulated sizable 401(k) plan account balances. The trend in the consistent participants’ account balances highlights the accumulation effect of ongoing 401(k) participation, the researchers said. In fact, at the end of 2019, 33% of the active group had more than $200,000 in their 401(k) plan accounts at their current employers, while another 20% had between $100,000 and $200,000. In contrast, in the broader EBRI/ICI 401(k) database, 11% had accounts with more than $200,000, and 9% had between $100,000 and $200,000. The new study analyzed account balances of 1.3 million active 401(k) participants who maintained accounts with the same plan sponsor each year from 2010 through 2019. A summary and link to the study can be found here.