The average 401(k) account balance rose to $60,700 by the end of Q3 2009, up nearly 13% from the end of the second quarter and up 28% from the end of the first quarter, according to research by Fidelity Investments.
Our two consecutive quarters of gains in the equity markets also brought relief and, ultimately, a positive impact to the investment returns of 401(k) participants. According to Fidelity, participants' median one-year personal rates of return (PRR) for the volatile 12 months ending September 30, 2009 was a postive 0.4%. As a point of comparison, participants had annualized median PRRs of 3.2% and 1.9% over the past five and ten years, respectively.
Fidelity also reports that employers are beginning to reinstate their 401(k) matches as the economy shows signs of improvement. Of those businesses that lowered or suspended their matches, 27% say they have already reinstated the match or have plans to do so in 2010.
So there.
Image: Creative Commons Photo "Smile" by alancleaver
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