The U.S. stock market rout that has put U.S. equities in a bear market isn\u2019t just reducing the net worth of billionaires like Elon Musk and Jeff Bezos. It\u2019s also taking a toll on Americans\u2019 retirement savings, wiping out trillions of dollars in value.<\/p>\n\n\n\n
The selloff has erased nearly $3 trillion from U.S. retirement accounts, according to Alicia Munnell, director of the Center for Retirement Research at Boston College. By her calculations, 401(k) plan participants have lost about $1.4 trillion from their accounts since the end of 2021. People with IRAs \u2014 most of which are 401(k) rollovers \u2014 have lost $2 trillion this year.<\/p>\n\n\n\n
This year\u2019s stock slump is the most severe market downturn since March of 2020, when COVID-19 erupted in the U.S. Historically, 401(k) investments take about two years after a market decline of this size to regain their previous value.<\/p>\n\n\n\n
\u201cAnybody who has to retire when the market is down is in a bad position,\u201d Munnell said.<\/p>\n\n\n\n
\u201cYounger people, you can kind of wait it out \u2014 these things have come back time and time again,\u201d she added. \u201cBut people who use their retirement money to support themselves really suffer in this kind of event.\u201d<\/p>\n\n\n\n
Stock market\u2019s fall has wiped out $3 trillion in US retirement savings this year<\/p>","protected":false},"author":4,"featured_media":446,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n