{"id":1451,"date":"2020-02-11T20:11:36","date_gmt":"2020-02-11T19:11:36","guid":{"rendered":"https:\/\/healthcareers.co\/?p=1451"},"modified":"2020-06-20T10:33:16","modified_gmt":"2020-06-20T09:33:16","slug":"401k-stats","status":"publish","type":"post","link":"https:\/\/healthcareers.co\/401k-stats\/","title":{"rendered":"31 Key 401(k) Stats & Facts for a Lucrative Retirement"},"content":{"rendered":"

People dream of retirement as a well-deserved, hard-earned, and peaceful period of their lives.\u00a0<\/span><\/p>\n

Even though retirement can seem thousands of years away, if you don\u2019t start saving and investing in your future on time, it will seem more like a nightmare than a dream once you reach your golden years.\u00a0<\/span><\/p>\n

Also, seeing how times have changed, and how relying on a pension is practically impossible nowadays, we have curated a list of the most important <\/span>401(k) stats<\/span> that will help you boost your nest egg and prepare you for your much-deserved retirement.<\/span><\/p>\n

A record number of 401(k) holders recently achieved millionaire status, and you can be one of them if you start investing right now.\u00a0<\/span><\/p>\n

What is 401(k)?<\/span> What\u2019s the <\/span>average retirement age<\/span>? What are the <\/span>average savings by age<\/span>? How much do you need to save for a carefree retirement?\u00a0<\/span><\/p>\n

If you seek answers to the aforementioned questions, just keep on reading!<\/span><\/p>\n

But first, take a look at some eye-opening stats about 401(k) in general.<\/span><\/p>\n

Top 10 Essential <\/b>401(k) Statistics<\/b> and Facts:<\/b><\/h2>\n
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  • Employers usually contribute to the 401(k) with 50 cents for every $1 their employees contribute.<\/span><\/li>\n
  • The total contribution limit for 2020 is $57,000 for people younger than 49.<\/span><\/li>\n
  • People can contribute an additional $3,000 a year under the 403(b) plan.<\/span><\/li>\n
  • Self-employed people can contribute up to 25% of their net income to an Individual 401(k) plan.<\/span><\/li>\n
  • With $357,200 in their 401(k) account balance in Q1 2019, boomers were the generation with the highest balance as <\/span>401(k) statistics by age<\/span> show.<\/span><\/li>\n
  • If a person withdraws their 401(k) savings before they turn 59 \u00bd, the IRS will punish them with a 10% early withdrawal penalty.<\/span><\/li>\n
  • Delaying withdrawals can also bring penalties \u2014 50% of the difference between what should have been distributed and what was actually withdrawn.<\/span><\/li>\n
  • About 77% of 401(k) users are investing in the target date.<\/span><\/li>\n
  • It\u2019s estimated that 37% of <\/span>American 401(k)<\/span> users aren\u2019t even aware they are paying fees.<\/span><\/li>\n
  • Approximately 91% of employees can choose investments for their own contributions.<\/span><\/li>\n<\/ul>\n

    And don\u2019t worry if you haven\u2019t started saving in your early twenties, millions of people have started much later; it\u2019s never too late to start investing in your future and saving for a peaceful and cozy retirement that you\u2019ve always dreamt of, and these stats will prove just that.<\/span><\/p>\n

    General <\/b>401(k) Stats<\/b> and Facts<\/b><\/h2>\n