U.S. total retirement market assets totaled $42.4 trillion in 3Q2024, up from $40.7 trillion in 2Q2024... IRAs and defined contributions accounted for the majority.

 

Given that defined contribution accounts and IRAs hold >50% of their assets in equities (ICI data, among others), it is fair to assume that the wealth effect significantly impacts consumer sentiment both positively and negatively. e.g., in 2022 both the retirement assets data (driven largely by a declining US stock market) and consumer sentiment declined. Small wonder the Fed keeps a close eye on the wealth effect.
 

For more on wealth effect and US consumer sentiment, I recommend reading: The sudden increase in the wealth effect and its impact on spending.

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