Retirement plan assets have reached almost $21 trillion, acounting for 43% of all household financial assets, according to the ICI. Assets are up 1% since the end of Q1 2013 and 6% since the end of 2012. According to the ICI, assets in DC plans and IRAs have swelled to $11 trillion, with 401(k) plans accounting for 72% of all DC plans. TDFs increased by 2.1% in Q2, growing to $540 billion.
The shift toward participant- or individual-directed retirement planning through DC plans and IRAs continues, with just $2.8 billion in DB plans (just 25% of the assets in DC plans and IRAs). IRAs are expected to grow even more as Baby Boomers retire and roll money out of their DC plans or cash out DB benefits. Some Washington insiders predict that legislators and regulators will put more focus on IRAs, which do not have the oversight and protection that qualified plans do under ERISA. Regardless, investors will need qualified advisors to help them — inside and outside of their employer plans.
