What happens if an employee participates regularly participant in their 401(k) plan? A lot, according to a new report from EBRI entitled, What Does Consistent Participation in 401(k) Pans Generate?

After looking at 1.3 million participants in the EBRI/ICI 401(k) database over a nine-year period from 2010 to 2019, researchers found that the average account balance increased at a compound annual average growth rate of 15.6%, rising from $58,658 to $216,690. In addition, the median 401(k) plan account balance for consistent participants increased at a compound annual average growth rate of 18.8 % over the same nine-year period, to $108,433 at year-end 2019. Growth in account balances for consistent participants generally exceeded the growth rate for all participants in the EBRI/ICI 401(k) database.

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