Consistency pays off. Workers who consistently participate in their 401(k) plan have seen their account balance grow rapidly over the past few years, according to an analysis by the Employee Benefit Research Institute.
EBRI tracked the account balances of workers who contributed (or their employers contributed) to their 401(k) plan in every year from 2010 through 2016 to determine how their accounts did over the time period. They did well. The average plan balance for consistent participants climbed from $75,378 to $167,330 between 2010 and 2016. That's a compound average annual growth rate of 14 percent. Here is how account balances grew over those years by age of worker in 2016...
Average 401(k) account balance of consistent participants in 2016 (and in 2010)
Workers in their 20s: $34,956 ( $3,998)
Workers in their 30s: $77,927 ( $21,804)
Workers in their 40s: $146,624 ( $57,117)
Workers in their 50s: $217,447 ( $99,388)
Workers in their 60s: $204,783 ($117,139)
Source: EBRI, What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Plan Account Balances, 2010—2016
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