"The average balance reached $134,128, indicating that retirement savings vary significantly with age and participation rates, especially among millennials."
"401(k) plans have revolutionized retirement savings since 1978, serving as a tax-advantaged tool for building financial security and wealth accumulation."
401(k) plans have evolved since their inception in 1978 into crucial retirement savings tools, managing $8.9 trillion in assets for around 70 million participants in 2024. These employer-sponsored plans allow tax-deferred contributions and help workers accumulate wealth through compounding. A significant rise in access and participation, notably among millennials, showcases their growing relevance. The average balance is $134,128, showcasing progress, but fluctuating market conditions and contribution limits present ongoing challenges. As discussions on personal finance deepen, understanding these dynamics is imperative for effective financial planning.
Read at 24/7 Wall St.
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