According to the new study by the Center for Retirement Research at Boston College, median combined 401(k) and Individual Retirement Account (IRA) balances for older millennials and young Gen Xers have declined from $63,500 in 2019 to $50,000 in 2022.
Center For Retirement Research At Boston College’s New Research About Retirement Balances
SOURCE– Individual retirement balances for midcareer workers have declined between the years 2019 and 2022, despite gains on financial assets such as stocks during that time, according to new research by the Center for Retirement Research at Boston College. Despite the decline, financial experts say that the loss is not necessarily as bad as it may seem.
According to a recent study by the Center for Retirement Research at Boston College, or CRR, the median combined 401(k) plans and individual retirement account balances (IRA) for people ages 35–44 have declined from $63,500 in 2019 to $50,000 in 2022.
The Center for Retirement Research report analyzed the balances among working households with 401(k) plan. The balances are not adjusted for inflation, which touched a forty-year high in 2022 and eroded the buying power of that money.
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Center For Retirement Research Reveals That Non-Retirement Accounts For Midcareer Workers Increased To 20%
According to Clayton County Register, the study by the Center for Retirement Research revealed that with the decline in individual retirement account balances of 35–44-year-olds, the share of households holding stocks in nonretirement accounts has increased from 14% to 20% among them.
It is unclear, based on the study of the Center for Retirement Research, whether the increase in nonretirement accounts is the reason for the decline in retirement savings, but it is still worth noting that nonretirement savings are still savings. To wrap up the new study by the Center for Retirement Research at Boston College, while midcareer workers experienced a decline in IRA balances, the increase in retirement plans and growth in investments in nonretirement accounts show various trends among different age groups when it comes to retirement savings.