Retirement Savings Rebounding, According to New Research
401(k) account balances have nearly doubled since the economic recession. While much of the increase reflects a rebounding market, the study also found a significant increase in participation and savings since the market collapse.
- 401(k) account balances have gone up 93 percent, with account balances rising 17 percent in 2013 alone.
- The number of participants choosing to increase their contribution rates has increased almost 70 percent.
- The average employee contribution rate has increased 14 percent during the same time period.
"Employees are making strides, but they still succumb to inertia and often set and forget their savings. That's one of the reasons we're working with employers to design plans that use the power of inertia to help individuals save at more adequate levels." - Jerry Patterson, senior vice president of Retirement and Investor Services.
The study, conducted by The Principal Knowledge Center, analyzed retirement plan participants savings and deferral changes among those enrolled in an employer 401(k) plan from 2008 to 2013.