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How bad was 2022 for retirement accounts? Pretty bad. While 401(k)s rose in the fourth quarter, average balances ended the year down 23% at $103,900, according to Fidelity Investmentsthe nation’s largest provider of retirement services with more than 43 million accounts.
Average IRA balances plummeted by a similar amount, falling 20% Y/Y to $104,000, while 403(b) plans for the public sector and non-profit organizations decreased 19% at $92,683.
Even more puzzling is that nearly half of all retirees now expect to outlive their current savings, according to a Clever Real Estate reportwhich may cause some regrets among those who chose to retire early due to the pandemic, only to find themselves hit with inflation.
2022 also ended with the lowest personal savings rate since 2005, while household debt rose to its highest level in two decades.
