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Everyone panicked a little during the financial crisis, however the 1.6 % of pre-retirees who abandoned equities altogether lost huge.

Pre-retirees (age 55 or older) who dropped stocks from their 401(k) by the first quarter of 2009 and never ever rebalanced have actually seen their balances expand by just 25.9 % with the first quarter of 2013, as mentioning by a brand-new report from Fidelity. Their ordinary balance increased throughout this period from $80,200 to $101,000.

Most people are doing much better.

The average pre-retiree 401(k) balance has nearly doubled considering that the depths of the slump, rising from $130,700 to $255,000.

‘There’s an useful lesson to be profited from the minority of pre-retirees who abandoned equities entirely and experienced significantly less progress,’ said Brian M. MacDonald, head of state, Workplace Investing, Fidelity Investments. ‘It emphasizes the incorporated relevance of a correct asset allotment and cost savings behavior as they planned for retirement within all that life requires.’

Overall, the 401(k) image is looking better. 401(k) balances are at their greatest level since the market crash, Fidelity found, reaching $80,900 in the first quarter– an 8.4 % bump over the last year and 75 % higher than at the marketplace low in 2009.

Two-thirds of that growth can be credited to gains in the stock market. At the same time, workers have been upping their individual contributions, as well as employers.

Still, $225,000 is not really exactly all that much to live on through your golden years. Retirees are expected to need as much as $220,000 conserved up just for health care expenses alone, according to another research by Fidelity earlier this month.

Mark Hebner, President of Index Fund Advisors, has actually long been a proponent of the Jack Bogle line of thinking– that keeping your savings in an inexpensive index fund that tracks the market, keeping your head down even through bumpy rides, and rebalancing as you age is the ideal and surest way to grow your wide range.

But even with a wide range of research to support the index funds approach, even he could not encourage all his customers to stay the course after the crash.

‘One customer came to see me on the extremely bottom day, March 9, 2009,’ Hebner told us. ‘I’d actually chatted her from offering many times, however she informed me, ‘I see nothing but darkness on the horizon and I don’t want to lose any more cash.’

That’s a worry that arrives, particularly if you are a single widow in your late 60s and all you want do is stop the pain. You are terrified to death and you think your investment advisor simply wants to generate income off you or whatever or that I’ve a bias and therefore I am chatting her into doing what may protest her best interests.’

Fidelity is the country’s largest administrator of 401(k) strategies. It’s analysis is based upon a survey of its accounts, consisting of employees who’ve worked even more than 10 years with their company.