Older high-income households with a 401(k) gained — everybody else lost

  • 401(k)/IRA balances increased for older working households
  • Younger households saw minimal increases or declines in balances
  • Higher-income households had larger percentage increases in balances
  • Bottom two quintiles experienced drops in balances or decrease in percentage with a plan
  • Overall, the 2022 SCF paints a disappointing picture of retirement assets for working households

The Federal Reserve’s 2022 Survey of Consumer Finances (SCF) reveals concerning trends in retirement saving. While older working households with a 401(k)/IRA saw an increase in balances, younger households experienced minimal growth or even declines. Higher-income households had larger percentage increases in their balances, while the bottom two quintiles faced drops in balances or a decrease in the percentage with a plan. Overall, the 2022 SCF paints a disappointing picture of retirement assets for working households, highlighting the need to address imbalanced growth and ensure the solvency of Social Security.

Public Companies: Federal Reserve (undefined)
Private Companies:
Key People:

Factuality Level: 7
Justification: The article provides data from the Federal Reserve’s 2022 Survey of Consumer Finances to support its claims about changes in retirement balances between 2019 and 2022. It acknowledges both positive and negative trends in retirement balances for different age and income groups. However, the article does not provide a comprehensive analysis of all factors influencing retirement assets and does not explore potential reasons for the disappointing picture presented by the survey.

Noise Level: 7
Justification: The article provides some analysis of the Federal Reserve’s 2022 Survey of Consumer Finances and discusses the changes in retirement balances for different age and income groups. However, it lacks scientific rigor and intellectual honesty as it does not provide evidence or data to support its claims. It also does not offer any actionable insights or solutions for improving retirement assets for working households. Additionally, the article goes off-topic by mentioning the solvency of Social Security without providing any further analysis or relevance to the main topic.

Financial Relevance: Yes
Financial Markets Impacted: The article mentions the stock market and bond returns, indicating a potential impact on financial markets and companies.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the Federal Reserve’s survey on changes in family finances and retirement balances. While it mentions economic disruption and stock market performance, there is no mention of any extreme events.

Reported publicly: www.marketwatch.com