American News Group

Retirements spike again as stock market booms

Huge numbers of Americans are leaving the workplace in a surprise second wave of the post-COVID retirement boom.

Why it matters: An aging country — combined with a booming stock market and a nudge from return-to-office policies — means more working stiffs are preparing to exit the stage.

What’s happening: The U.S. has about 2.7 million more retirees than predicted, Bloomberg reports from a model designed by an economist at the Federal Reserve Bank of St. Louis.

The big picture: The pandemic fundamentally altered the labor force in ways that made the jobs market historically tight.

Zoom in: Higher stock market returns and increasing asset values appear to be playing a role.

Between the lines: The increasing number of 401(k) millionaires are outstripped by the sheer number of graying citizens who aren’t prepared financially for retirement, especially as the social safety net frays.

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