Are you saving for the day you retire? Everyone else is.
During the recession, everything plummeted – jobs, salaries, savings, and confidence. But since 2009, something good went up. New research shows 401(k) accounts went crazy.
“401(k) account balanceshave gone up 93 percent, nearly double since the economic downturn in 2009,” boasts a recent survey released by the Principal Financial Group. “Since 2009, the number of participants choosing to increase their contribution rates has increased almost 70 percent.”
The average 401(k) now has an average balance of $54,000. While that’s higher than ever, it’s still not nearly enough, warns Consolidated Credit President Gary Herman.
“The common wisdom says you need 70 percent of your pre-retirement income to enjoy your actual retirement,” Herman says. “For many folks, $54,000 will cover a couple years at best.”
Still, Herman is encouraged by the upward trend and hopes it will continue. So does Principal Financial Group vice president Jerry Patterson, who says…
“The economic downturn may finally be in the rear view mirror, but the lessons learned from the crisis are hopefully influencing our savings habits as a nation moving forward. While we still have a lot of work to do to help Americans save at more adequate levels for retirement, these numbers are a positive sign.”
If you want your own numbers to stay positive, consult the Consolidated Credit Retirement Guide, and if you’re in debt and need to tackle that first, call a certified Consolidated Credit counselor for a free debt analysis at 1-888-294-3130.