Currently, you see mutual funds, which are where 401Ks usually park, are poured into Wall Street.  That has to be driving up the price of stocks to some degree.  If not that, the bond market.  Well, what happens to Wall Street, and the different financial markets, as people retire and start to cash out, and less people pay into it?  Isn't there increases chances that you will see a permanent decline in the price of stocks as people cash out?

Price for stock will always go up over time.

Reason: inflation.

Same reason as why there are more millionaires each year.

One question I see countless people asking is what will happen to house prices and/or stock prices as the baby boomers retire, being that the first of them turned 65 in 2010/2011 ... My expectations are that, since it will occur over a long period of time, the impact of the baby boomers will be fairly minimal.