Biden-Harris policies cost Americans $2.5 trillion in retirement savings, forcing six more years’ work.

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American retirement savings have taken a massive hit, with an estimated $2.5 trillion lost due to inflation and rate hikes under the Biden-Harris administration. Many older Americans now face the harsh reality of working an additional six years to recover the financial blow to their retirement accounts. Unlike banks, which received bailouts after similar losses, retirees are left bearing the full brunt of these economic policies.

According to a study led by economist E.J. Antoni, the average 401(k) plan grew by $11,000 from 2021 to 2024—but when adjusted for inflation, that gain turned into a staggering $12,000 loss, or 9.2%. While total retirement balances reached nearly $30 trillion by late 2024, inflation adjustments slashed that value down to approximately $27 trillion, showing the true extent of the loss.

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Retirement accounts with heavy bond allocations were hit hardest, as rate hikes devastated bond prices—leading to their worst performance since 1928. The Federal Reserve’s aggressive rate increases, meant to counter inflation, significantly lowered bond values since bond prices move inversely to interest rates. This left many retirees, who often rely on bonds, in a worse financial position with few options for recovery.

Adding to the frustration, banks that suffered similar losses from bond devaluations during the rate hikes received federal bailouts, while individual retirees did not. The lack of relief for retirees, compounded by diminished purchasing power, underscores the growing financial burden that many now carry into their senior years.

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