U.S. 401 (k) plan assets grew by a trillion dollars to more than $6 trillion in the most-recent plan year, according to a May 2021 report from Judy Diamond Associates. The fifth annual 401(k) Plan Benchmark Report “examines almost 600,000 active 401(k) plans, covering more than 88 million eligible workers and $6 trillion in total retirement assets,” […]
U.S. 401 (k) plan assets grew by a trillion dollars to more than $6 trillion in the most-recent plan year, according to a May 2021 report from Judy Diamond Associates.
The fifth annual 401(k) Plan Benchmark Report “examines almost 600,000 active 401(k) plans, covering more than 88 million eligible workers and $6 trillion in total retirement assets,” according to a release from the firm. The analysis encompassed 27 industrial groupings, which “were reviewed and segmented by size, from micro plans with 1-10 people to mega plans with 5,000 or more participants.”
Other findings from the report include the following:
• Average account balances grew to $109,823, with average contributions rising about 8 percent
• Actual participation rates remained at 81 percent year over year
• The median Rate of Return (RoR) on investments is “tightly clustered among all industries,” with all 27 sectors studied reporting 20 to 22 percent RoR
“Our goal is to present unbiased, data-supported insights into the 401(k) plans offered by employers in a wide variety of industries,” said study author Eric Ryles, VP of customer solutions at Judy Diamond Associates. “Our findings help plan sponsors determine whether or not they are taking the right steps to deliver positive retirement outcomes for their employees, empowering them to identify and correct deficiencies in their plans.”
The 401(k) Plan Benchmark Report can be accessed for free at: https://www.judydiamond.com/products/401k-benchmark-report/
Judy Diamond Associates is an employee-benefits research firm based in Washington, D.C. The firm provides lead-generation and market-intelligence tools to insurance and financial-services firms.