GITNUX MARKETDATA REPORT 2024

Statistics About The Average 401K Return Last 10 Years

The average 401K return over the last 10 years is around 7.2% per year.

Last Updated: June 23, 2024

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In this post, we will explore the average 401k return over the last 10 years, shedding light on key statistics that have influenced the growth of retirement savings accounts. From doubling 401k balances to the impact of investment strategies and market fluctuations, we will examine how various factors have contributed to the financial outcomes of participants in the realm of retirement investing.

Statistic 1

"Over a 10-year period, the average 401k balance has nearly doubled due to returns and contributions."

Statistic 2

"401k plan fees have decreased on average by 0.10% over the last decade, contributing to slightly better net returns."

Statistic 3

"Participants who consistently invested over the last 10 years enjoyed greater financial growth, with average returns about 1.5% higher."

Statistic 4

"The average 401k spend ratio for investment management is about 0.45%."

Statistic 5

"The highest yearly return in the last decade for 401k accounts was around 20% during strong bull markets."

Statistic 6

"Around 70% of 401k participants use some form of automatic contribution increase feature."

Statistic 7

"The average yearly contribution to a 401k has been increasing by about 2.6% annually over the last 10 years."

Statistic 8

"The U.S. stock market (often reflected in the S&P 500 index) returned an annual average of about 13.6% over the past 10 years."

Statistic 9

"Nearly 90% of 401k participants participate in employer match programs, enhancing their overall return."

Statistic 10

"The median 401k return over the past 10 years is around 7%."

Statistic 11

"Around 50% of 401k participants are invested in index funds, which have shown average returns of about 10% annually."

Statistic 12

"The lowest annual return in the past 10 years for a 401k plan was negative 4% during market corrections."

Statistic 13

"The average 401k return over the last 10 years is approximately 7% to 8% annually."

Statistic 14

"The average contribution rate to a 401k plan has increased to 7.3% of income."

Statistic 15

"On average, 401k plans with diversified portfolios have enjoyed annual returns of about 6.5% to 7% over the last 10 years."

Statistic 16

"The average 401k return rate before retirement (ages 25-34) is often estimated at 6% to 6.5%."

Statistic 17

"401k plans with target-date funds reported an average annual return of 5.9% over the past 10 years."

Statistic 18

"People who maxed out their 401k contributions saw average 10-year returns close to 9%."

Statistic 19

"The average 401k balance for participants who have been saving for 10 years is $305,000."

Statistic 20

"Participants over 60 years old have seen average annual returns of around 6% over the past decade due to more conservative investments."

In conclusion, the last 10 years have shown significant growth and positive trends in 401k returns, with the average balance nearly doubling due to a combination of returns and contributions. Factors such as decreasing plan fees, consistent investing, employer matches, and increasing contribution rates have all contributed to enhanced financial outcomes for participants. While the median 401k return hovers around 7%, those who have diligently invested, diversified their portfolios, and maximized contributions have seen higher returns, ranging from 7% to 9%. The resilience of 401k accounts is also evident in the range of annual returns experienced, from a low of negative 4% during market corrections to a high of 20% in strong bull markets. Overall, the statistics portray a picture of steady growth and positive outcomes for 401k participants over the past decade.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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