In the United States, there is a record increase in the volume of funds in citizens’ retirement accounts. The financial services firm’s analysis of more than 45 million 401k, 403b and IRA accounts shows Loyalty Investments Last year their average size increased to $118.6 thousand.
This is the maximum value in the last two years and is up 14% compared to 2021 ($103.9 thousand).
The number of millionaire retirement account holders increased by 11.5 percent, reaching 422 thousand, and the number of accounts with amounts ranging from 100 thousand dollars to 1 million dollars increased by 15 percent, reaching 5.75 million.
Growth in retirement savings is associated with favorable conditions in the US stock market. In 2022, the Nasdaq index grew by 43 percent, the S&P 500 index by 24 percent, and the Dow Jones index by 13 percent. Inflation in the country slowed to 3.4 percent at the end of the year, after a record 6.5 percent in December 2021.
In an interview with the channel CNBC Fidelity Vice President of Thought Leadership Mike Shamrell said the accumulated funds will allow Americans to be less likely to resort to expensive loans in unexpected situations. According to the law, citizens will be able to temporarily use up to 50 percent of the funds in their retirement accounts. Last year, 8.9% of account holders applied for such loans; this rate was 7.8% in 2021.
But only 56% of workers eligible for retirement savings take advantage of this opportunity, according to the U.S. Bureau of Labor Statistics.
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