Just about everyone's 401(k) took some kind of hit during the stock market downturn of 2008-09. Research from the Employee Benefits Research Institute shows that the average 401(k) balance dropped by 34.7 percent in 2008 alone.
Many savers compounded the error by reducing the amount of money they put into those accounts. But the study also showed the importance of staying the course, even through a sharp market decline. The average 401(k) account had $63,929 in it by the end of 2012. But among those who maintained consistent contributions to their accounts, the average balance was $107,053.
Plan holders who made regular contributions to their 401(k)s earned a 6.8 percent return between the end of 2007 and the end of 2012, despite the massive downturn in the middle of those years. That's one more lesson in the importance of not neglecting your retirement plan.
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