Retirement Balances Lagging for Older Americans, While Younger Generation Aims for Millionaire Status

Older investors, particularly baby boomers, are struggling to recover from the market losses of 2022, while younger investors have largely rebounded. The average millennial 401(k) balance has surpassed pre-pandemic levels, while the average boomer account remains below its 2021 high. The decline in both stocks and bonds last year hit older investors harder, as they typically have more bonds in their portfolios. Many retirees have been forced to sell assets at a loss, depleting their savings and hindering their ability to recover when the markets bounce back. Seeking financial advice and considering the potential long-term gains of bond investing may be beneficial for those with diminished retirement funds.