Retirement Accounts Come Roaring Back in 2025 |
After four years of losing ground under President Biden, retirement plans have made a big after-inflation comeback this year. That’s the conclusion of the new Unleash Prosperity study, “Reversal of Fortune: 401(k) Plan Returns Under Biden and Trump.”
Both equity and bond markets have delivered solid returns this year, and low inflation rates have preserved those nominal gains, equating to a real (inflation-adjusted) increase of over 15 percent to the average 401(k) retirement plan.
Investors’ experience this year stands in stark contrast to the prior four years under Mr. Biden. Although the average return on equities was robust from the first quarter of 2021 through the first quarter of 2025, that was only half the story.
The bond market had its worst four-year run in a century, burying savers in losses. The deadly combination of both 40-year-high inflation and the fastest rise in........