The Typical 401k Plan Participant

The Employee Benefit Research Institute (EBRI) has released a brief (401k Plan Asset Allocation, Account Balances, and Loan Activity in 2007) summarizing and updating its database of 401k plan facts. Released in December 2008, the report updates 401k information through December 2007 but, of course, misses the 401k account balance devastation that occurred in the last half of 2008.

Still, the information is the best that is currently available and provides useful benchmarks to see how your own 401k experience compares with others.

Some facts about the "typical 401k plan participant" (circa 2007):

• The median Age of 401k Plan participants is 44 years. Following is a breakdown of 401k participants by age group:
  

  401k Participants By Age Group
  20's	30's	40's	50's	60's
  12%	25%	30%	24%	8%

• The median tenure (time with employer) is six years. Following is a breakdown of 401k participants by tenure:
  

  401k Participants By Tenure
  0-2 Yrs	>2-5 Yrs	>5-10 Yrs	>10-20 Yrs	>20-30 Yrs	>30 Yrs
  19%	19%	25%	21%	11%	5%

• At year-end 2007, the average 401k account balance was $65,454; the median 401k account balance was $18,942; Following is a breakdown of 401k account balances:
  

  401k Account Balance Sizes, 2007
  <$10,000	$10,000-$50,000	$50,000-$100,000	$100,000-$200,000	>$200,000
  39%	30%	13%	10%	8%

• 60% of all 401k plans allow plan participants to take out loans. 18% of all 401k participants who were allowed to borrow from their 401k accounts had loans outstanding. The average outstanding 401k loan balance at the end of 2007 was $7,495, or about 12% of participants' 401k account balances.

The complete EBRI report can be downloaded here.