With all the bad news going around nowadays, people who have 401(k) plans have some good news. Earnings on 401(k) policies have been sneaking up over the past year according to press releases from various outlets.

Retirement anxiety all over

In the past few years, a lot of people who have 401(k) plans were shocked to see them go from being nest eggs to rotten ones as the stock industry tanked. A large number of current and soon-to-be retirees were mortified and cast into uncertainty. According to the Huffington Post, a number of surveys of people in what is called „Generation Y,“ the people born after Generation X and missed out on wearing flannel, have indicated this demographic are somewhat pessimistic about retirement.

USA Today pointed out that many people are beginning to stress less about retirement as their 401(k) plans and accounts are beginning to rebound and earn cash again. It is pretty exciting for a lot of people.

Some balances up 25 percent

USA Today reports that multiple numbers have been reported, but they all show positive gains in the plans. 401(k) policies are tax-protected mutual funds, more or less, so when Lipper reported an 11.4 percent increase in the typical stock mutual fund, it essentially meant that retirement accounts are increasing by at least that much.

The average 401(k) plan had $74,380 in it, according to Aon Hewitt. That is good news since it was $70,970 at the start of the year. The typical stock mutual fund increased 124 percent since 2009, according to Lipper, which is also good.

According to Time magazine, investment firm Funds Advisor found the median employer-sponsored retirement plan had valued by 25 percent in the past three years. Specifically, 401(k) plans valued an average 28 percent.

Different states saw various increases too. The red states saw a 28 percent increase while blue states only saw 25 percent. People in Arkansas only saw a 1 percent increase while those in Mississippi saw an 80 percent increase.

Huge gains for contributors

People who contributed to their 401(k) policies regularly saw the most gains, which both Time and USA Today reported to be a common thing.

If you can put a little more cash into your account every month, it will be able to make more money in the end. It is a „snowball“ effect where the snowball gets bigger as it rolls down the bill and gets more snow. The 401(k) will get bigger without putting additional money in, but it can gain more if you put extra cash in regularly.

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