Cecily O'Connor
RedwoodAge.com

The stock market's recent rise may provide some soon-to-retire boomers with much-needed hope, but don't get cocky. 

Near-term gains hardly wipe out the pain - with high earners reeling the most. Families with more than $100,000 a year in income have experienced the highest retirement account losses over the past 18 months, according to a report by the nonprofit Employee Benefit Research Institute

The EBRI study shows how much ground US workers have lost in their defined contribution plans and IRAs as a result of the harsh economic downturn.

"Americans have a great deal of work to do after the tremendous loss of wealth in 2008 to ensure financial security in retirement," said Craig Copeland, EBRI senior research associate.

The median balance among all families with a defined contribution plan  - such as a 401(k) - fell 16.4 percent to $26,578 in mid-June from $31,800 at year-end 2007.

The losses were higher for families with more than $100,000 a year in income, with such accounts down 22 percent. Those with a net worth in the top 10 percent experienced a 28 percent drop.

These estimates are based on the asset allocation within each defined contribution account, adjusting for the market returns for stocks and bonds. Individuals should look at their own situations and consult with an independent financial advisor in addition to brokers, who are trying to sell financial services.

Among IRA and Keogh plans, the median value dropped 15 percent to $28,955 in mid June from $34,000 at the end of 2007.

Despite the falling balance, Copeland offered reasons to look on the bright side, noting that most individuals continue to contribute to their individual account plans and are in a position to accumulate added wealth as the economy recovers.