Particular person retirement accounts and 401(okay)s have grown strongly lately, regardless of some bumps within the highway within the type of persistent market volatility and quickly rising rates of interest.
That is the conclusion drawn in a new evaluation revealed by the Worker Profit Analysis Institute, titled “The Standing of American Households’ Accumulations in Particular person Account Retirement Plans: An Evaluation of the 2022 Survey of Shopper Funds.”
Because the title signifies, the EBRI report makes use of the most recent out there information from the triennial Survey of Shopper Funds, which particulars Individuals’ wealth in a wide range of methods — together with by offering perception on retirement account possession and account balances.
After modest progress and even some declines in retirement account possession and property from 2016 to 2019, there was substantial progress from 2019 to 2022, EBRI reviews. Individuals skilled notably sturdy positive aspects within the possession incidence of Roth-type accounts, together with among the many youthful generations.
“Whereas the outcomes of this examine don’t reply questions on what is required for retirement, it does present the continued significance of particular person account plans,” stated Craig Copeland, director of wealth advantages analysis at EBRI.
The very fact is that tax-advantaged retirement accounts of every type contribute considerably to the standard household’s web value at present, Copeland stated. Thus, any coverage that alters this technique might have large penalties — both optimistic or detrimental — for Individuals’ skill to fund a snug retirement.
See the slideshow for a assessment of eight key findings from the brand new EBRI report.