Sept. 12, 2003 — Asset diversification and continuing contributions "generally muted" the effects of poor equity market performance on 401(k) accounts, according to new research from the Investment Company Institute (ICI) and the Employee Benefit Research Institute (EBRI).
Among the findings of the report:
*While broad equity market indexes fell 22% in 2002, the average 401(k) balance fell 7.9% among workers who have maintained accounts since year-end 1999.
*The average balance declined a total of 10.0% between year-end 1999 and year-end 2002 versus a 40% drop in broad equity indexes.