401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2008
American workers who held 401(k) accounts consistently from 2003 through 2008 suffered a 24.3 percent average drop in their account balance during 2008’s bear market, according to a report released today by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI). These consistent participants saw their average account balances increase at an annual rate of 7.2 percent over five years, even after the 2008 losses, according to the study. The account balances include ongoing worker contributions, employer contributions, and investment gains and losses. Press release