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More 401K Savers Give Control To Professionals

Wednesday, June 12, 2013 - 4:40 PM
From MarketWatch.com:

More 401(k) savers hand investing control to pros - Encore - MarketWatch

This caught my eyes:

"Generally, the report shows, rising markets helped account balances grow last year. The average balance in a Vanguard account at the end of 2012 was $86,212, up about 10% from the previous year, while the median account balance was $27,843. Among investors age 45 to 54, the corresponding figures were $103,269 and $45,588; for those age 55 to 64, they were $154,421 and $67,239. Boomers generally saved more of their income than the average plan member, with 45-to-54-year-olds saving 7.4% and 55-to-64-year-olds saving 8.7%. Thirteen percent of the younger boomers and 18% of the older boomers maxed out their 401(k) contributions in 2012."

The average 401K account balance is $154,421 for the 55-64 age group.  That is pretty low.  Am I missing something here?  Is the explanation that the average Americans are relatively poor, while the top 1% are filthy rich; with very uneven wealth distribution?
4
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
1. Wednesday, June 12, 2013 - 4:59 PM
With the demise, for the most part, of defined pension plans it's not surprising that "average" Americans, whomever they are, can't adequately save for retirement.  Without a forced allotment of 20 percent of pre-tax earnings into some type of retirement plan I doubt anything will change. In fact, the whole situation will just get worse in the future, as Social Security and Medicare benefits will have to be cut or taxes increased to fund the programs.
5
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
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