When Inflation Strikes Your Retirement Plan

More victims of US Dollar Inflation!

Food or medicine?   Those are bad choices to have to make, just like having to drain the last of your retirement savings to heat your home in the winter.

But Americans’ retirement plans are cracking up on the reefs of Washington’s monetary policies.  Its elective destruction of the purchasing power of the dollar has depleted their nest eggs by a staggering $1 trillion.

A new study covered by the New York Post finds that “Bidenomics has reduced the real value of the average 401(k) by a quarter in the last two and a half years.”

In just its first two years, the White House geniuses’ policies tanked the average 401(k) plan by about 13 percent, or some $17,000.  

From the story:

How this happened is a painful lesson in government overspending and overregulating, the hallmarks of Bidenomics.

Immediately upon taking office, the Biden administration and their big-spender allies in Congress ran up multitrillion-dollar tabs with no way to pay, so the Federal Reserve just created the money to finance it all.

That sparked 40-year-high inflation, which was followed by the fastest interest rate hikes in just as long.

This severely hampered equities but completely devastated bond markets, delivering a one-two punch to people’s retirement accounts. 

But wait!  There’s more:

Through the third quarter of this year, pension plans have lost $3.3 trillion, or 12.1%, of real value during the Biden administration….

Between lost purchasing power from inflation and higher borrowing costs from interest rate hikes, the typical American family has lost the equivalent of $7,300 in annual income under Biden.

To make ends meet, a record number of Americans are now working multiple jobs, but that’s still not enough to cover the $11,400 higher cost of living.

SEE ALSO:

The real story of Bidenomics can be told in countless ways.  Expect more stories like these:

• Household savings have fallen, while families have run up a record $1.1 trillion in credit card debt.
  
• The Wall Street Journal recently ran this headline:  How High Are Housing Costs? Divorced Couples Forced to Live Together.
  
• Gold entered December setting new all-time highs over $2,000 an ounce.