The claim that President Joe Biden’s exit from the 2024 presidential race sparked an unforeseen retirement crisis in 2025 is a dramatic narrative that’s been floating around, but let’s unpack it with a clear head. The idea stems from economic anxieties tied to Biden’s policies and his withdrawal, which some argue destabilized markets and eroded retirement savings. However, the evidence suggests this “crisis” is overstated, with roots in ongoing economic challenges rather than a single event like Biden’s exit. Here’s the real story, told straight.
Biden announced his withdrawal from the 2024 election on July 21, 2024, endorsing Vice President Kamala Harris after a shaky debate performance and mounting party pressure. Some voices on platforms like X have claimed this move caused market jitters, slashing retirement accounts by thousands and delaying retirements by years. For example, posts cite a study claiming the average worker lost $12,000 in savings due to inflation and Federal Reserve rate hikes under Biden, with bonds—a key retiree asset—taking a hit. Another post alleges a $30,000 drop in retirement savings, blaming Biden’s economic policies for forcing people to work a decade longer.
The truth? Economic pressures like inflation, which hit a 40-year high of 9.1% in 2022, and subsequent rate hikes did dent retirement accounts. A Heritage Foundation study noted a 25% real-value loss in the average 401(k) over Biden’s first two and a half years, equating to about $17,000, due to inflation and a brutal 2022 bond market. But these losses predate Biden’s exit, tied more to post-COVID spending and global supply chain issues than his July 2024 decision. Market reactions to his withdrawal were muted—J.P. Morgan reported minimal shifts in rates markets, with front-end yields up slightly and long-end yields down, suggesting no immediate “crisis” sparked by the announcement.
Biden’s policies, like the 2022 Inflation Reduction Act, aimed to curb inflation (which fell to 3.3% by May 2024), but retirees still faced high costs for essentials like housing and healthcare. Social Security’s 2024 COLA of 3.2% lagged behind inflation’s bite, with the Senior Citizens League noting a 36% loss in purchasing power since 2000. Biden’s proposed payroll tax hikes for high earners to bolster Social Security’s trust fund, projected to deplete by 2034, stalled amid political gridlock. Meanwhile, the SECURE 2.0 Act raised the age for required minimum distributions to 73, giving retirees tax deferral flexibility, but this was a pre-exit policy, not a reaction to it.
The “retirement crisis” narrative also ignores broader context. Many Americans—nearly half of households over 55, per a 2019 GAO report—lack retirement savings, relying heavily on Social Security. Biden’s exit didn’t create this; it’s a decades-long issue. His withdrawal may have shifted political dynamics, with Harris’ loss to Trump in November 2024 raising questions about future policies, but linking it directly to a 2025 retirement meltdown lacks hard evidence. Retirees face real challenges— inflation, uncertain benefits, and market volatility—but calling it a “shocking” crisis triggered by Biden’s exit is more hyperbole than fact.
