Retirements have been Snagged of $3 Trillion as Market Continues to Slump Stock
The stock market's fall has wiped out $3 trillion in retirement savings this year...
Every boomer loves their retirement savings and would ultimately consider it their saving grace. However, no matter how much they love and care for their retirements, the stock market just doesn’t care.
As of recent, the stock market has been slumping, and not only is it reducing the net worth of billionaires, but it is also taking a toll on Americans’ retirement savings, wiping out trillions in value.
Nearly $3 Trillion from United States retirement accounts has been erased as the stock market continues to tumble, according to Alicia Munnell, director of the Center for Retirement Research at Boston College. According to her found data, 401(k) participants have lost $1.4 Trillion from their accounts since the end of 2021. Those with IRAs have lost $2 Trillion.
It has been suggested that this stock slump is the most severe since the downturn of March 2020. We all know the occurrence then, which was the Covid pandemic, however now we face an inflationary bubble we created on our own. For those saying “My retirement will recover” you’re right, but, historically, 401(k) investments take about two years after a market decline of this size to regain their previous value.
"Anybody who has to retire when the market is down is in a bad position. Younger people, you can kind of wait it out — these things have come back time and time again. But people who use their retirement money to support themselves really suffer in this kind of event."
Alicia Munnell said.
Read more on the retirement bubble, risk and reward, and paltry 401(k)s HERE