Retirement Age Americans Have Not Recouped 401k Losses From 2022

Retirement may be a long way off for some, but many Americans aged 55 and over are still feeling the effects of a bleak 2022 when it comes to their 401k balances.

Oct 8, 2023 - 22:57
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Retirement Age Americans Have Not Recouped 401k Losses From 2022

Retirement may be a long way off for some, but many Americans aged 55 and over are still feeling the effects of a bleak 2022 when it comes to their 401k balances. Many have not been able to recoup their losses.

Research from the data firm HeartsAndWallets found that as of the second quarter of 2023, the average 401k balance of those aged 55 and over had only increased 3.8% from 2022, when it had dropped to its lowest level since 2007. The firm states that the lower-than-expected recovery in the retirement savings of those approaching retirement age could be due to stock market volatility.

The estimated median 401k balance of those aged 55 and over as of the second quarter of 2023 was only slightly above 2022 levels, at $187,400, which is $200 lower than the median record high of $187,600 from the fourth quarter of 2021.

The survey found that those aged 45 to 54 had experienced larger losses and larger gains in their 401ks since 2022. As of the second quarter of 2023, the estimated median balance of those aged 45 to 54 was up 8.3% from 2022, reaching $99,500.

The research revealed that other retirement savings vehicles beyond 401ks, such as IRAs, have not seen the same level of recovery. The estimated median IRA balance of those aged 55 and over has only increased by 3% since 2022, to $130,400.