Payments

Bank of America study finds 401(k) balances increasing

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February 14, 2024

Bank of America found that 401(k) account balances rose by 15% to an average of $86,280 in 2023, up from $75,045 at the end of 2022 in its fourth quarter 2023 Participant Pulse study. Health Savings Account balances also increased by 11% year-over-year, according to a press release.

The Pulse study looks at plan participants in Bank of America client's employee benefits program of more than 4 million people. Other data points include:

• 18% increased their contribution rates.
• Only 2.3% borrowed from their 401(k) plan.
• 17% of men invested in their HSA compared to 11% of women.
• Millennials saved the most of their HSA contributions at 34%.

"We were encouraged to see more plan participants taking positive actions in their accounts in the fourth quarter," Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America, said in the release. "These insights offer signs that people are prioritizing their retirement savings, with more employees increasing their contribution rates and fewer taking hardship distributions."