Comment by googlywoogly
4 months ago
The exact value of all 401k isn't really known, but the average account value is estimated at ~135k, if (let's say) 200 million Americans have a 401k, that comes out to 27 trillion.
4 months ago
The exact value of all 401k isn't really known, but the average account value is estimated at ~135k, if (let's say) 200 million Americans have a 401k, that comes out to 27 trillion.
> isn't really known
It's mostly known, but you're probably right it's not exactly known
45 trillion across all retirement accounts, 12 trillion in defined contribution (including 401k), 9 trillion in just 401k
https://www.ici.org/statistical-report/ret_25_q2
In that chart, the 18T of IRA has portion in private equity, and the 15T of pension (defined benefit) has a portion in private equity. The 13T defined contribution plans (of which the vast majority is 401k) can't be placed in private equity right now.
Yeah, but I don't think anybody is expecting every single American to take out 100% of their savings from the stock market and put them in private equity.
You really think the amount of savings in 401ks is the same size as the GDP of the whole country?
That's comparing a rate of flow to a static amount. In other words, GDP is 27 trillion per year.
It's not, but IRA plus 401k is about equal to GDP, yes (and if you add approximately equivalent defined contribution plans like 403b, tsp, etc, then it's more than GDP)
> It's not, but IRA plus 401k is about equal to GDP
The economic vampires must salivate about this opportunity all night and day.
Why shouldn't it be? GDP is _economic production (for some value of economic production) for a year_. It's not all that closely linked to wealth.