How do your 401(k) contributions stack up to the average worker in 2020?

On average, workers with 401k plans are doing quite well. But are you saving and getting the investment returns you need?

This year has been rough, to say the least, and not everyone can afford to contribute to their 401(k) right now. But contribution rates have remained strong in 2020, according to data from Fidelity Investments. During the 12-month period ending in September of this year, the average 401(k) participant saved $7,270, Fidelity found.

That comes out to just over $600 per month. In addition, the average worker also earned $4,010 in employer contributions this year. Between employee and employer contributions, workers contributed a total of 13.5% of their salary, on average, to their 401(k) plans.

Source: How do your 401(k) contributions stack up to the average worker in 2020? | Fox Business

Here is a site where you can find some handy calculators to help you figure out your retirement.

RSW Calculator. https://www.rswwealth.com/about-us/resources/

2 comments

  1. Since the subject is 401Ks today and the market hit a high this week, I decided to look at my 401k. For those that don’t believe that the market will come back, this year has been a shining example that if you don’t panic sell, you will be ok.

    When the market low happen as covid crisis hit, my 401k dropped by -21.5%. Today, I am up +11.2% and hopefully I will finish out the year still above 7%. Normally, it might take a year or two to make that kind of comeback after about 33% swing but it will happen. If it is painful to look at, don’t look. Don’t go crazy worrying about your 401K day to day if it is diversified.

    When I was much younger and had only a small 5 figure nest egg, dropping $5k was devastating. I learned not to look or panic. Now that my nest egg is much bigger and I know that it will bounce back, it is kind of fun. Did my fund drop by a new car or a new truck this month? Maybe I gain a sports car? In the covid crisis, I dropped the valve of my house but I gain back a bigger house plus a new car.

    Play the long game and it will be ok.

    What is scary is that if I were to buy a new pickup truck today, it would cost as much as my first house and the payment for a year would exceed the total cost of my 1982 F150. But people are paying the price for those trucks.

    Liked by 1 person

    1. I don’t understand why Dwayne is frightened by the price of a new pick-up. Think of all the money that can be saved by not buying one!

      Yes, it’s possible to do very well in stocks, provided you don’t trade profits away by nervously flying from one investment to another, and don’t get frightened into buying bonds or insurance.

      Liked by 1 person

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