An update on 401(k) plans

Munnell, Alicia Haydock, Francesca N. Golub-Sass, and Dan Muldoon. “An update on 401(k) plans”. Issue in Brief 9-5, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, March 2009. http://hdl.handle.net/2345/bc-ir:104288.
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Abstract

The brief's key findings are: (1) The 2007 Survey of Consumer Finances shows 401(k)/IRA balances of $78,000 for those approaching retirement, a modest improvement over 2004. (2) This progress was due to slightly higher participation rates, improved diversification, reduced leakage, and the maturation of 401(k)s. (3) However, by October 2008, the stock market collapse had reduced 401(k)/IRA balances by about 30 percent - to just $56,000. (4) In addition, companies have begun cutting their employer match, and hardship withdrawals - while still at low levels - have ticked up. (5) The inadequacy of 401(k) balances suggests the need for a new tier of saving.

Title
An update on 401(k) plans: Insights from the 2007 SCF
Author
Munnell, Alicia Haydock
Golub-Sass, Francesca N.
Muldoon, Dan
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
March 2009
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
9-5
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104288
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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