Americans are increasingly tapping their investment portfolios to support consumer spending, marking a notable shift in household financial behavior, according to new research from the JPMorganChase Institute. The economic think tank examined over 20 million de-identified Chase checking accounts and found that 8.2% of individuals transferred money from investments into checking accounts during the three months ending in April, compared to 4% during the same period in 2019 and 2.4% in 2015.
The trend reflects the growing importance of stock market holdings to overall household wealth. Stock market holdings now represent nearly one-third of total household assets in the first quarter of 2026, roughly double the share from the beginning of the 2010s. Researchers attribute the increase in investment withdrawals to several years of substantial gains in equity markets, which have boosted household wealth and encouraged spending through what economists term the “wealth effect.” Recent stock market performance has been strong, with the S&P 500 rising 24.2% in 2023, 23.3% in 2024, 16.4% in 2025, and approximately 12.2% through September 28 of this year.
The withdrawals are occurring across all age and income groups, though the trend is most pronounced among older and higher-income households. Among those in the top 10% by income, 20.3% made net withdrawals in the three months ending April 2026, compared to 6.6% in the same period in 2015. Among those age 65 and older in the highest income bracket, 37.3% made net withdrawals in 2025, up from 24.5% in 2019. However, younger savers are also increasingly moving money from investment accounts, with 7.1% of 25- to 44-year-olds with below-median incomes making withdrawals in 2025, up from 2.9% in 2019.
Federal Reserve research released in early September supports these findings, indicating that consumer spending has become significantly more sensitive to stock market movements over recent decades. The analysis suggests that a hypothetical 25% decline in the S&P 500 could result in a 3% reduction in consumption. Notably, the research indicates that withdrawn funds are being spent rather than held as cash reserves, as checking account balances for liquidity have remained relatively stable. The shift reflects broader changes in retirement savings structures, with the long-term decline of traditional pensions and rise of defined-contribution plans such as 401(k)s contributing to the pattern.
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