Statistics About The Average Rate Of Return 401K

In this post, we will explore a range of statistics related to 401(k) plans in the U.S., shedding light on key figures such as average balances, contribution rates, and rates of return. From the growth in 401(k) balances over the years to the percentage of individuals maximizing their contributions, these statistics provide valuable insights into retirement savings trends and behaviors.

Statistic 1

"The average 401(k) plan account balance for workers aged 65 years and older in the U.S is nearly $216,720."

Statistic 2

"Between 2011 and 2016, the average 401(k) balance increased by 80%."

Statistic 3

"The average 401(k) balance is $92,148 as of the end of 2020."

Statistic 4

"The average 401(k) returns have varied from -20% to +32% over the past 10 years."

Statistic 5

"85% of Americans are not maxing out their 401(k) as of 2019."

Statistic 6

"The percentage of retirement savers with at least six figures in their 401(k) accounts hit a record 41% in Q4 2020."

Statistic 7

"In 2019, the average 401(k) savings rate was 7%."

Statistic 8

"The average 401(k) contribution was $7,270 in 2019."

Statistic 9

"The average annual rate of return for 401(k) plans is between 5% and 8%."

Statistic 10

"Among employers that offer a 401(k) match, the average contribution is 4.3% of pay."

Statistic 11

"In 2020, the 401(k) plans with the highest returns had a nearly 13% rate of return."

Statistic 12

"The average American contributes 6.2% of their income to their 401(k)."

Statistic 13

"An estimated 76% of employers match contributions their employees make to their 401(k) plans in 2020."

Statistic 14

"The average participant-directed contribution to a 401(k) plan was 6.1% in 2019."

Statistic 15

"Most 401(k) plans provide an average investment return of 5-8% per year."

Statistic 16

"According to the Investment Company Institute, at the end of 2020, mutual funds held about 48 percent of 401(k) plan assets."

Statistic 17

"The average 401(k) savings rate for individuals in their 60s is 11%."

In sum, the statistics reveal a mix of promising trends and areas for potential improvement in the realm of 401(k) savings and returns in the U.S. While there has been significant growth in the average account balance and the percentage of retirement savers with substantial savings, a significant portion of Americans are not maximizing their 401(k) contributions. The varying average rates of return highlight the importance of informed investment decisions, with the potential for attractive returns for those who allocate their funds wisely. Efforts to increase contribution rates and take advantage of employer matches could further boost retirement savings for individuals.