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Balances of Consistent 401(k) Savers More Than Doubled Since 2010

An analysis of trends in the average plan account balance of consistent 401(k) participants underscores the powerful accumulation effect of ongoing participation.

New data published by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) finds that the average 401(k) plan account balance of those who remained active in the same 401(k) plans from year-end 2010 through year-end 2016 more than doubled, greatly exceeding the growth rate for all participants in the EBRI/ICI 401(k) database.

The study examines the accounts of 6.1 million consistent 401(k) participants, which is a subset of the 27.1 million participants in the database. Overall, it finds that average balances for these consistent participants increased by 122% during this period, with all age groups registering significant increases. 401(k) account balance growth reflects contributions of employers and workers, in addition to investment returns, and varies with participants’ asset allocation, withdrawals and loan activity.

Other key findings in “What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Account Balances, 2010-2016” include:


  • The average 401(k) plan account balance of the consistent participants grew at a compound annual average rate of 14.2% from 2010 through year-end 2016, to $167,330. This was more than double the average account balance of $75,358 among all participants in the EBRI/ICI 401(k) database at year-end 2016.

  • The median 401(k) plan account balance for consistent participants increased at a compound annual average growth rate of 18.3% over the period, to $82,338 at year-end 2016.

  • Among the group of consistent participants, 26.4% had more than $200,000 in their 401(k) plan accounts at their current employers, while another 18.4% had accumulated between $100,000 and $200,000.

  • On average at year-end 2016, about two-thirds of 401(k) participants’ assets were invested in equities — whether through equity funds, the equity portion of target date and non-target date balanced funds, or company stock. Asset allocations were similar across the consistent participant sample and participants in the broader EBRI/ICI 401(k) database at year-end 2016.


Though annual updates of the EBRI/ICI 401(k) database provide valuable perspectives of 401(k) plan account balances, asset allocation and loan activity across wide cross-sections of participants, cross-sectional analyses are not well suited to examining the impact of participation in 401(k) plans over time, the report notes. It explains, among other things, that the average 401(k) account balance for the database as a whole can be influenced by 401(k) participants and plan sponsors entering and leaving the database.

“The data in this report help us understand the importance of continuous participation in the 401(k) system,” notes Jack VanDerhei, EBRI’s director of research. “By analyzing data from consistent participants over the past six years, we’re able to see that 401(k) plan accounts have a very positive financial effect on retirement nest eggs, thus helping savers plan for the future.”

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