Substantial Growth in Individual Retirement Plan Ownership and Assets from 2019 to 2022: EBRI Report
Are you saving enough for retirement? According to a recent report by the Employee Benefit Research Institute (EBRI), there has been substantial growth in individual retirement plan ownership and assets from 2019 to 2022. This growth was primarily driven by an increase in IRA ownership, particularly in Roth accounts.
The report found that the median total individual account plan balance increased by 15% from 2019 to 2022, with the percentage of families with assets in an individual account plan also increasing. This is good news for American families as they work towards building a comfortable retirement.
One key finding from the report is that individual account retirement plans, such as 401(k) plans and IRAs, have become the predominant source of financial assets for American families. In fact, in 2022, individual account assets constituted 65% of financial assets at the median among families owning these assets.
Not only do individual account assets make up a large portion of families’ financial assets, but families with these assets also have substantially higher levels of net worth compared to those without individual account assets. The median net worth for families with individual account assets was $442,900 in 2022, compared to $47,450 for families without these assets.
The report highlights the importance of individual account plans in helping families save for retirement and build wealth. As the director of Wealth Benefits Research at EBRI, Craig Copeland, noted, any policy changes that alter this system could have consequences, either positive or negative, for Americans’ ability to fund a comfortable retirement.
In conclusion, the report underscores the significance of individual retirement plans in helping American families secure their financial future. It’s essential to regularly review your retirement savings strategy and make adjustments as needed to ensure you’re on track to meet your retirement goals.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.