2003 401(k) Retirement Balances Look Meager

According to the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) at the end of 2003 42 million workers had $1.9 trillion assets in their 401(k) retirement plans. For the over 60 age bracket, the average balance was $127,130. For workers in this age bracket with 2 years or less tenure the average balance was $34,281. For over 60 year olds with more than 30 years service, the average balance was $178,181.

The balances suggest that older workers, who expect their 401(k) to exclusively support their retirement, are in serious trouble. The interest income from $127,130 at today's low interest rates would be paltry.

These data present more evidence that you must start to save and invest for your retirement at the earliest possible age.