Between soaring inflation, rising interest rates, and declines in the bond and equity markets, many Americans' finances took a beating in 2022. So much so that the average retirement account balance fell by 20% compared to 2021, according to a report from Vanguard. Still, many investors remained "resilient" through the uncertainty, the company contends.
Average account balances fell from a record-high of $141,542 at the end of 2021 to around $112,572 last year, while the median balance fell from $35,345 to $27,376, according to Vanguard's How America Saves report for 2023. The report analyzes trends among over 5 million defined contribution plans (such as 401(k)s) that Vanguard manages.
