As if day-to-day living expenses weren’t depressing enough, a quick peek at your 401(k) statements might prove to be too much.
A new report indicates the stock market decline in 2022 has led to Americans’ retirement savings accounts having lost upwards of $3.4 trillion.
Alicia Munnell, director of the Center for Retirement Research at Boston College, calculated her estimates for losses involving 401(k) plans and IRAs, which are mostly rollovers.
The numbers are staggering.
According to the data she presents, 401(k) plan participants have lost roughly $1.4 trillion from their accounts while IRAs have lost $2 trillion in 2022 due to the decline in the stock market.
That is a whopping $3.4 trillion combined.
— CRR Boston College (@RetirementRsrch) June 21, 2022
Retirement Accounts Have Lost Trillions
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A separate report from Investor’s Business Daily (IBD) notes that retirement assets “have plunged by an astounding and painful $8.77 trillion” as of earlier in the week.
“That puts a big dent into your retirement planning,” they understated.
For some perspective, IBD writes that those losses represent almost 32 times the cost of the entire Apollo moon-landing program between 1960 through 1973, using dollars adjusted to 2020 inflation rates.
— Rusty 🎙️ (@rustyweiss74) June 24, 2022
Fox Business spoke with several people terrified over what the stock market plunge has done to their retirement situation.
“They’re not doing too good right now,” one man said of his investments. “We’ve been losing a lot of money.”
“It’s horrible, I mean, I was thinking I might be retiring, you know, in the next year or two,” one woman added. “And now, I don’t know. I don’t know when I can do that.”
Others, they write, were so frightened that they haven’t bothered to take a look at their retirement accounts to see exactly what they’ve lost.
Inflation is rising faster than wages, and retirement savings have taken a huge hit — along with Americans’ sense of security. ‘Retirement accounts see combined losses of $3.4 trillion.’ https://t.co/PT8fweIb2x
— Byron York (@ByronYork) June 23, 2022
Trump Predicted This Would Happen
The Fox Business report points out that the retirement savings wipeout combined with the high cost of, well … everything, has been devastating for the American people.
“The losses coupled with inflation sitting at a 40-year high, means Americans are hemorrhaging money,” they explain.
If you’re worried over the fact that retirement accounts in the United States have lost trillions in 2022 then put your mind at ease.
White House press secretary Karine Jean-Pierre gave a little sigh when asked about 401(k)s “getting wiped out” and essentially brushed it off by pivoting to the job ‘gains’ – read, replacements – under the President.
Q: “What is the president’s message to somebody who might wanna retire, but their 401k is getting wiped out?”
Karine Jean-Pierre audibly sighs, then says Biden is “incredibly focused” on the economy. pic.twitter.com/vd0TDUC58J
— RNC Research (@RNCResearch) June 13, 2022
“So we know — we know that the — that high prices are having a real effect on people’s lives. We get that,” she reassured the American people.”
“And we are incredibly focused on doing everything that we can to make sure that the economy is working for every — American people,” Jean-Pierre added. “But we are coming out of the strongest job market in American history, and that matters.”
When the year began, President Biden couldn’t help but brag about the stock market hitting “record after record after record on my watch.”
Joe Biden, January 2022: The stock market “has hit record after record after record on my watch” pic.twitter.com/TyrQqx2Zxi
— RNC Research (@RNCResearch) June 13, 2022
CNN ran a story last week pointing out that all of the stock market gains under Biden had been wiped out.
“This year’s turmoil on Wall Street has dealt the president a tough blow,” they write. “The S&P 500 has now lost all of its gains since Biden was inaugurated last year.”
Munhall writes that these current losses could be argued as simply wiping out those gains but still sting nonetheless.
“But it’s human nature for people to feel like prior gains are theirs to keep, so the recent losses are painful,” she illustrates.
The S&P 500 has now lost all of its gains since Biden was inaugurated last year. The S&P 500, one of the broadest measures of the US stock market and the economy, is down 2.7% since 1/20/21. Stocks fell into the red following Monday’s 3.9% market plunge. https://t.co/TM3aBabjvR
— Dave Rexrode (@DRexrode) June 14, 2022
Former President Donald Trump often warned during his 2020 campaign that Biden would be a disaster for the economy, even noting the likelihood of retirement accounts being decimated.
“Your 401(k) will drop down to nothing, and the stock market will drop down to nothing,” he cautioned.
Trump has a stock prediction if another president is elected: “Your 401(k) will drop down to nothing and the stock market will drop down to nothing.” https://t.co/aFnEUThVkD
— MarketWatch (@MarketWatch) July 3, 2020
It might not be ‘nothing,’ but retirement accounts having lost trillions is not trivial by any means. Working Americans are suffering under Biden, as are those seeking to retire after decades of dedicating their lives to their jobs.
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