The Total View - (Page 15) Account Balances Account balances increased by double digits (12 percent) from 2005 to 2006. Account balances also increased industry-wide. The average account balance for retirement plans with services provided by The Principal as of year-end 2006 was $36,541. At The Principal, we found that average balances increased as tenure increased, and that companies with fewer than 50 employees had the highest average account balance. Account balances differ significantly by gender. Males continued to have average balances higher than females. However, females’ average account balance rose by a slightly larger percent than that of males from 2005. 16 + Years 5-9 Years 3-4 Years Average account balances experience exponential growth in the later years of employee service. Average Account Balances by Years of Service <1 Year $3,835 $3,823 $4,734 $6,042 $6,200 $7,620 $9,418 $10,184 $11,555 $14,349 $14,167 $16,391 $17,666 $19,600 $21,076 $26,990 $30,059 $35,449 $46,352 $52,861 $60,671 $89,364 $98,989 $116,743 1-2 Years 2-3 Years 2004 2005 2006 4-5 Years 10-15 Years $0 $20 $40 $60 $80 Thousand $100 $120 $140 The greater the participant compensation, generally the higher the account balance. Average Account Balances by Compensation Status $160,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $157,360 $138,490 $140,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $119,605 $120,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $100,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $80,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $60,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $32,118 $40,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $28,934 $26,160 $20,000 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– $0 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 2004 2005 2006 Highly Compensated Non Highly Compensated 15
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