Retirement Alarm: Bidenomics Impact Hits Retirement Accounts

As the sun sets on the hopes of millions of Americans aiming to retire in peace, a dark cloud of financial uncertainty looms overhead. These individuals could find their retirement dreams slipping away. Recent research, conducted in collaboration with the Committee to Unleash Prosperity, reveals a stark reality: the average 401(k) has lost a quarter of its real value over the past two and a half years under the economic policies of Bidenomics.

Study Reveals Massive Losses in Retirement Accounts Under Biden

Image Credit: Shutterstock / Vitalii Vodolazskyi

In an exploration of individual retirement accounts (IRAs) and pension plans, the study exposes huge losses that could significantly delay the retirement plans of countless Americans. 

Exploring the Fallout

Image Credit: Shutterstock / – Yuri A

The study states that upon assuming office, the Biden administration embarked on an ambitious spending spree alongside their big-spending allies in Congress. 

Inflation, Interest Rate Hikes, and the Double Blow to Americans’ Retirement Plans

Featured Image Credit: Shutterstock / Perfect Wave

With multitrillion-dollar tabs accumulating and no clear means to foot the bill, the Federal Reserve resorted to creating money to finance the unprecedented expenditure.

This triggered a 40-year-high inflation rate, swiftly followed by interest rate hikes unseen in decades.

Equities and Bonds Hit Hard

Image Credit: Shutterstock / tadamichi

According to the report, equities suffered, and bond markets were decimated, delivering a dual blow to people’s retirement accounts. 

The Unprecedented Challenges Facing Retirement Accounts

Image Credit: Shutterstock / wavebreakmedia

The year 2022 witnessed both equities and bonds experiencing negative average returns, marking the worst year for the bond market since at least 1928.

The Shocking Numbers

Image Credit: Shutterstock / Drozd Irina

The average 401(k) plan plummeted by almost 13%, approximately $17,000, in the initial two years of the Biden administration, amounting to a massive $1 trillion in net losses across all plans.

Inflation’s Toll

Image Credit: Shutterstock / Deemerwha studio

Yet, the report stresses, the impact did not stop there. Stratospheric inflation, a direct consequence of excessive government spending, borrowing, and money printing, further eroded the value of 401(k) plans. 

Real Losses of $33,200 per 401(k) Plan

Image Credit: Shutterstock / PaeGAG

On average, each plan suffered a real (inflation-adjusted) loss of around $33,200 or 24.8%, with the study estimating that pension plans, while somewhat more resilient, still experienced real declines.

Pension Plans in Peril

Image Credit: Shutterstock / emilie zhang

The report paints a picture with dire implications, especially for those relying on pensions for their retirement. 

Threats to Pension Fund Solvency

Image Credit: Shutterstock / Gorodenkoff

These declines jeopardize pension fund solvency and may pose a significant threat to defined benefit plans with inflation adjustments.

Avoidable Economic Downturn?

Image Credit: Shutterstock / Romankonovalov

The study purports that this economic downturn could have been avoided. 

Study Challenges White House Narrative on Bidenomics

Image Credit: Shutterstock / Joseph Sohm

Contrary to the White House narrative of inheriting a struggling economy, the study’s data states that Biden took the reins of an economy with a $1.5 trillion annualized growth rate and a mere 1.4% inflation rate. 

One-Time COVID Spending Expiry

Image Credit: Shutterstock / blvdone

According to the report, if Biden had allowed one-time COVID spending to expire, the federal deficit could have vanished amidst soaring tax receipts, keeping inflation in check.

More Spending, Multitrillion-Dollar Deficits, and Consequences

Image Credit: Shutterstock / Chirag Nagpal

Biden chose a different path, advocating for more spending and institutionalizing multitrillion-dollar deficits. According to the study, this had major consequences. 

Purchasing Power Loss and Higher Borrowing Costs

Image Credit: Shutterstock / Cast Of Thousands

It alleges that the average American family has seen a loss equivalent to $7,300 in annual income under Biden due to lost purchasing power and higher borrowing costs. 

Fallout from Biden’s Economic Policies

Image Credit: Shutterstock / jason cox

The aftermath includes a surge in multiple job-holders, a record $1.1 trillion in credit card debt, and dwindling savings.

Real Impact on IRA Values

Image Credit: Shutterstock / fizkes

The report alleges that even those who manage to make ends meet are not unscathed. Those planning on retiring with a $1 million IRA have apparently seen their accounts lose almost $250,000 in real value. 

Working an Additional Decade

Image Credit: Shutterstock / Inside Creative House

The typical retiree must apparently now work an additional decade to recover these losses.

Bleak Prospects

Image Credit: Shutterstock / NONGASIMO

The report underscores that the prospects for retirement accounts remain bleak as government expenditures outpace consumer spending, and federal debt is set to breach $34 trillion. 

Change Needed in Washington

Image Credit: Shutterstock / Andrea Izzotti

It alleges that if there’s no change of heart in Washington, the prospect of retirement may slip away for many Americans.

Complex Challenges in Bidenomics

Image Credit: Shutterstock / gpointstudio

The impact of Bidenomics on retirement savings is a complex and multifaceted issue.

However, the research cited in this discussion aims to shed light on the significant challenges faced by millions of Americans attempting to secure their financial futures. 

Navigating the Impact on Retirement Savings

Image Credit: Shutterstock / Ground Picture

The future of retirement savings hinges on a nuanced understanding of economic mechanisms and a collaborative effort by lawmakers to ensure the financial well-being of all Americans.

Biden’s New 401(k) Rule: Employers Frustrated as Retirement Planning Responsibilities Shift

Image Credit: Shutterstock / lev radin

The latest Biden administration rule on 401(k) plans is reshaping how employers manage retirement plans. It’s a complex scenario requiring a fresh understanding of fiduciary duties and provider relationships. This rule aims to protect employees but also imposes new responsibilities on employers. Biden’s New 401(k) Rule: Employers Frustrated as Retirement Planning Responsibilities Shift

Elon Musk: New Immigration Bill ‘Enables Illegals to Vote’

Image Credit: Shutterstock / photosince

Elon Musk is calling for prosecutions after the text for a new senate bill on immigration was released. Musk accused the new bill of “enabling illegals to vote.” Elon Musk: New Immigration Bill ‘Enables Illegals to Vote’

Colorado Officials Reject Sanctuary City Status, Warn Against ‘Dangerous Game’

Image Credit: Shutterstock / Ruben2533

With increasing numbers of migrants arriving in Colorado, public officials have rejected any notion of the state becoming a sanctuary for migrants and asylum seekers. Colorado Officials Reject Sanctuary City Status, Warn Against ‘Dangerous Game’

Disney Challenges DeSantis’ “Don’t Say Gay” Rule With a Hefty Lawsuit

Image Credit: Shutterstock / Andrew Cline

Disney is set to appeal its refusal for a lawsuit against Ron DeSantis, who stripped the company of its rights for disagreeing with the Governor’s views on the teaching of sexual orientation in classrooms. Disney Challenges DeSantis’ “Don’t Say Gay” Rule With a Hefty Lawsuit

Trump on the Attack as 21 Million Americans Flock to Obamacare, Biden Pushes Forward

Image Credit: Shutterstock / Nicole Glass Photography

An unprecedented surge in health plan enrollments has reignited former President Donald Trump’s commitment to dismantling the program should he secure the GOP nomination once again. Trump on the Attack as 21 Million Americans Flock to Obamacare, Biden Pushes Forward

The post Retirement Alarm: Bidenomics Impact Hits Retirement Accounts first appeared on From Frugal to Free.

Featured Image Credit: Shutterstock / fizkes.

The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

(Visited 1 times, 1 visits today)