With all the bad news going around nowadays, individuals who have 401(k) plans have some great news. Earnings on 401(k) policies have been sneaking up over the past year according to press releases from several outlets.
Retirement anxiety all over
In the past few years, a number of people who have 401(k) policies were shocked to see them go from being nest eggs to rotten ones as the stock market tanked. A lot of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, numerous surveys of individuals in what is called "Generation Y," the people born after Generation X and missed out on wearing flannel, have indicated this demographic are somewhat pessimistic about retirement.
However, numerous surveys, studies and data released to the press recently might curb a bit of that retirement anxiety, according to USA Today. A good number of 401(k) policies or rather 401(k) accounts are beginning to earn again.
A 25 percent increase
Many people have gained at least 11.4 percent or more in their 401(k) plans since they are basically tax-protected mutual funds. The typical stock mutual fund increased 11.4 percent during the last year, according to Lipper reports. There are a lot of different numbers being reported, but they are all positive, according to USA Today.
The typical 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the start of the year. The average stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
During the last three years, the average employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) policies appreciated 28 percent, according to Time magazine.
The increase varied by state; Mississippians loved an 80 percent increase while individuals in Arkansas had to do with a paltry 1 percent. Interestingly, "red" states saw an average 28 percent increase compared to 25 percent for blue states.
Regular contributors enjoyed biggest gains
If there's a common thread through some of these, both USA Today and Time both report that the largest gains were universally recognized by people who continually contribute to their 401(k) policies.
Just like a snowball, retirement accounts can make more cash and accumulate more with more money added to it. Just a little more money should be contributed to the account monthly so that it can make more money each month.
Retirement anxiety all over
In the past few years, a number of people who have 401(k) policies were shocked to see them go from being nest eggs to rotten ones as the stock market tanked. A lot of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, numerous surveys of individuals in what is called "Generation Y," the people born after Generation X and missed out on wearing flannel, have indicated this demographic are somewhat pessimistic about retirement.
However, numerous surveys, studies and data released to the press recently might curb a bit of that retirement anxiety, according to USA Today. A good number of 401(k) policies or rather 401(k) accounts are beginning to earn again.
A 25 percent increase
Many people have gained at least 11.4 percent or more in their 401(k) plans since they are basically tax-protected mutual funds. The typical stock mutual fund increased 11.4 percent during the last year, according to Lipper reports. There are a lot of different numbers being reported, but they are all positive, according to USA Today.
The typical 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the start of the year. The average stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.
During the last three years, the average employer-sponsored retirement plan valued 25 percent, according to investment firm funds Advisor. The 401(k) policies appreciated 28 percent, according to Time magazine.
The increase varied by state; Mississippians loved an 80 percent increase while individuals in Arkansas had to do with a paltry 1 percent. Interestingly, "red" states saw an average 28 percent increase compared to 25 percent for blue states.
Regular contributors enjoyed biggest gains
If there's a common thread through some of these, both USA Today and Time both report that the largest gains were universally recognized by people who continually contribute to their 401(k) policies.
Just like a snowball, retirement accounts can make more cash and accumulate more with more money added to it. Just a little more money should be contributed to the account monthly so that it can make more money each month.
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