55 years old average 401k balance $211k

[turkeyneck]

SAN FRANCISCO (MarketWatch) — People who stuck with their 401(k) plan through thick and thin for the past 10 years more than doubled their account balances, according to the latest data from Fidelity Investments on the behavior of 11 million plan participants. But a separate study found that many workers are not faring well with retirement saving.

The average account balance for savers who are now 55 years old or older and have been participating in their plan continuously for 10 years was $211,300 at the end of the third quarter, up from $96,000 a decade ago, according to Fidelity.

http://www.marketwatch.com/story/the-401k-pays-off-for-a-lucky-few-2010-11-11

 

[SomeYoungGuy]

Another way to look at this is that the average 401k balance was fully invested in the Dow 10 yrs ago, and that average contributor pumped in $10k / yr since to the same investment portfolio. The numbers work almost to the penny.

Not as much of a story to find that the average investor invests an average amount and gets average returns..

 

[limitdown]

and yet,

and yet,

and yet that example person (55 years old with an average $211,000 retirement savings account balance)

is doing quite well!, and is ahead of most persons!

 

[turkeyneck]

How can you afford a reasonable retirement with only $200k or so?

 

[1prometheus]

the idea that the vast majority of people can self fund a retirement via the stock market or other securities is a myth. In fact the entire notion of a "retirement" or "golden years" is for most people a myth. That only works for the top 20% or so.

Traditionally, children and extended family helped take care of old people, and in turn old people pitched in the best they could with things like childcare, cooking, cleaning, etc. Old people were not considered useless but rather important and normal parts of families and communities.

Today, we have the generational wealth transfer scheme social security. However, for many family or public assistance will continue to be the only viable option.

 

[ElCubano]

Quote from limitdown:

and yet,

and yet,

and yet that example person (55 years old with an average $211,000 retirement savings account balance)

is doing quite well!, and is ahead of most persons!

it's more like 55 years old avg $200k in debt.

 

[peilthetraveler]

Quote from turkeyneck:

How can you afford a reasonable retirement with only $200k or so?

Put into a high paying divy stock like MO and get 6% return, plus you got Social security paying $2100 per month if he was making $80k per year and you are looking at about $3,100 per month. Remember that its likely that this person who put money into his 401k is financially responsible so its likely he bought a house 30 years ago and its paid off by now, so he has no rent or mortgage to pay.

 

[KINGOFSHORTS]

LOL 211K

thats shit. The 401K has been the biggest scammed pulled on the sheep in quite some time.

401K was never meant to replace a pension. 401K was really only meant to be used as a tool to help the wealthy shelter some assets.

Somehow someone figured out how to scam the sheep in the process.

 

[denner]

The article only paints half the picture. It's the same trick that's been used for years. So, there is 211k in a 401(k), matched against how much mortgage and credit card debt. If you balance it out, what picture are we presented with.

Another thing worth mentioning to put into stark contrast the world of difference between private/public sector retirement. $211k is not going to go too far in this day and age and that's the sum total. On the other hand, how many retired teacher's or courthouse clerks will take home roughly $50-$70k PER YEAR in fixed pension payouts multiplied over perhaps 25-30 years. Now, figure the total cost of that and what a complete and utter scam the public sector retirement system has become.

Here we live in a world of ZIRP and the states are still blowing up the local economies to try and payout these absurd guaranteed pensions while the private sector is stuck in an equity market that has gone nowhere for a decade and interest income that is doing nothing for them.

In all fairness though, the private sector situation is palatable IF the public sector would even remotely amend its guaranteed pensions. I've argued for a long time that one of the last bastions of consumer spending are all these government employees who spend every penny they earn, knowing full well that the state will take care of them for life upon retirement. You want to see consumer prices take a hit, just watch if/when these contracts are re-negotiated and guaranteed pensions are done away with.

 

[Eliot Hosewater]

According to AARP, two thirds of people between 55 and 64 have a mortgage in 2007, with a median value of $85,000. I wonder how much that has changed in the past 3 years? Most likely many are underwater now.