SmartAssets retirement expert is passionate about helping both individuals and business owners prepare for retirement. Keep in mind this is the average rate of return and is based on a common moderate investment portfolio consisting of 60% equities and 40% debt/cash. In addition to better money oversight, run your investments through their award-winning Investment Checkup tool. WebA 0% weighting in stocks and a 100% weighting in bonds has provided an average annual return of 6.1%, beating inflation by roughly 3.4% a year and twice the current risk free rate of return. The more diverse and low-cost options available give investors options best suited for their long-term needs. This is used to figure out your age and the number of years before you retire. It was founded in 1957. However, the IRS sets 401(k) plan contribution limits each year. Your feedback is very important to us. Of course, a large part of that difference is a result of your employers matching funds. Average Retirement Savings: How Do You Compare? Dividends account for about 40% of the total gain over this period. Even without matching, the 401(k) can still make financial sense because of its tax benefits. But from 2000 to 2009, the market saw a major terrorist attack and a recession. But well explain what to look for and where to find them. c){for(var d=[],e=2;e