A recent report from the Employee Benefit Research Institute and the Investment Company Institute reveals that the average long-term 401k balance decreased 24% in 2008.
This figure includes contributions from both employer and employees. In addition, the losses are worse (30.5%) for accounts that were created more recently.
The report also addresses the amount of time it could take for account balances to recover to beginning of 2008 levels. At lower assumed levels of equity market returns, the time required could be as long as 10 years.
Additional topics include:
- The varying impact in light of account balances and employment tenure.
- The impact on the near-elderly.
Source: Employee Benefit Research Institute
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