SAN FRANCISCO (MarketWatch) — People who stuck with their 401(k) plan through thick and thin for the past 10 years more than doubled their account balances, according to the latest data from Fidelity Investments on the behavior of 11 million plan participants.
The average account balance for savers who are now 55 years old or older and have been participating in their plan continuously for 10 years was $211,300 at the end of the third quarter, up from $96,000 a decade ago, according to Fidelity.
Keep in mind: About two-thirds of the account-balance gain is due to savers’ own contributions, plus their employer match, and one-third of the gain is due to market returns, according to Fidelity.
Looking at the total population of Fidelity accounts, the average balance rose 9.4% to $67,600 in September, from $61,800 in June.
Workers pumped an average 8.2% of their earnings into their 401(k)s, a figure that hasn’t changed for almost two years. But a sign of optimism, perhaps: 4.2% of savers increased their contribution rate, a bigger portion than the 3.1% who decreased it.
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