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July 07, 1997 01:00 AM

401(K) PLAN PARTICIPANTS SAVING A LOT

Fred Williams
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    BOSTON - Despite recent surveys indicating most workers are concerned about having sufficient financial resources to retire, nearly one-half of respondents in a new Fidelity Investments survey have saved more than $50,000 for retirement and another 31% exceed $100,000.

    Marking the 15th anniversary of the 401(k), the Boston-based service provider surveyed 504 plan participants who have saved for an average of 9.3 years through a Fidelity-administered plan.

    Most respondents, 54% rated themselves highly in terms of how they have saved for retirement, according to the survey.

    The report card - Americans and their 401(k)s - is the first public study of long-term 401(k) participants

    The average age of the participants surveyed was 45.

    In contrast, a recent Public Agenda study found 46% of 1,200 Americans had saved less than $10,000 for retirement.

    And according to a recent survey by Louis Harris Associates, New York, only about 40% of baby boomers between the ages of 33 and 52 participating in 401(k) plans have invested the maximum amount allowed by those plans

    "After a 15-year explosion in 401(k) availability, it's unfortunate that more Americans haven't taken advantage of these programs," according to Peter Smail, president of Fidelity Institutional Retirement Services Co.

    "The convenience of workplace savings should be driving more Americans to save for retirement, and today more than 80% of Americans who have the option to participate in a company 401(k) do so," he said.

    Most of the Fidelity survey's long-term plan participants (59%) said they expect to need up to $500,000 in total retirement savings.

    Mr. Smail noted that with a $50,000 account balance a 45-year-old participant can expect that investment to grow to $233,048 over the next 20 years, assuming a constant annual growth rate of 8%, not withstanding additional future contributions.

    That account balance after 20 years increases to $423,046 if the plan participant contributes $75 per week.

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