DC plans and IRAs continued to grow at double digit rates in the first three quarters of 2013, according to the ICI. At the end of Q3 2013, IRA accounts had $6.2 trillion, growing 10.7% since the end of 2012 and 24% since 2011. DC plans grew 12% since the end of 2012 and 24.4% since 2011, fueled by the growth of 401(k) plans, up 14.3% since the end of 2012 and 29% since 2011. DC plans and IRAs now represent almost 54% of all retirement assets — a figure that now stands at $21.9 trillion.
Private DB plans grew at 7.4% in the first three quarters of 2013 and now stand at $2.9 trillion. When annuities are added, the total is $4.8 trillion, up 6.7% in the first three quarters of 2013. State, federal and local pensions, at $5.4 trillion, grew 10.2% over that period.
It should be noted that the S&P 500 rose by 19.8% for the first three quarters of 2013 and dropped 10.5% in Q4.
Other highlights of the ICI report include:
• Withdrawals remained stable at 3.0%, similar to 2012; just 1.4% made hardship withdrawals, also similar to 2012.
• Only 2.5% of participants stopped contributing, compared with 2.1% in 2012, 2.2% in 2011 and 5.0% in 2009.
• 9.2% changed their asset allocation and 6.8% changed contributions, compared with 13.5% in 2008 and 9.8% in 2009 respectively.
• 18.3% of participants had an outstanding loan, a number that’s comparable to 2012 but up from 15.3% in 2008.
