Fat 401(K) Plans Spread Savers Thin: $3.3 Trillion Vs. $54,000
NEW YORK ( BankingMyWay) -- U.S.-based 401(k) plans hold $3.3 trillion in assets, more than seven times the amount 20 years ago, according to the Profit-Sharing/401(k) Council of America.
But that money is apparently spread fairly thin: the average 401(k) account held only $54,000 in 2010.
That problem has not gone away in the past two years.
About 33% of retirees say they didn't start contributing to a 401(k) early enough, with 80% saying that delay was a major regret. "When it comes to 'lessons learned,' the message from today's retirees to today's workers is straightforward: Make a plan for retirement saving early and, above all, save as much as you possibly can," Castille says. Investors love their "target" funds
Retirees and workers are strong advocates of so-called target funds -- 401(k) plan funds that, according to BlackRock, hold a "variety of investments automatically rebalanced and reallocated over time seeking to become more conservative, and lower the chance of losing money as the worker nears their planned retirement age." More than 90% of those surveyed said they found target funds "appealing." Many favor "automatic" plan increases
More than 40% of plan participants are in favor of their companies automatically increasing the amount of money deducted from their paychecks for their 401(k) plans on an annual basis, while 40% of retirees said they wish they had taken the same step during their working years. More on saving for retirement:
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