The Shocking Decline in Average American Retirement Savings

The average workplace retirement plan balance for American investors fell from $144,280 to $111,210 in 2022, as the stock market experienced significant losses. The median plan balance dropped to $23,818, the lowest in a decade, with a median annual return of -14.7%. The participation rate in workplace savings plans slightly decreased, while the average contribution rate slipped. However, most workers stayed the course and did not make drastic changes to their investments. The percentage of workers eligible for workplace plans with fewer than two years of service increased, indicating the effectiveness of automatic enrollment plans. Despite the challenges, markets have shown improvement in 2023, with the S&P 500 index up over 14% by the end of June.