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ICI: Retirement Assets Reach $19.5 Trillion, Driven by DC and IRA Market

The ICI reported that retirement assets grew to almost $20 trillion by the end of 2012, up 8.6% for 2012 and 7.9% since the pre-recession high. DC plans and IRAs, which held $5.4 and $5.1 trillion respectively, grew even faster — at 10.5% last year and 14% since their pre-recession highs. Government plans accounted for $4.8 trillion, growing 7.7% in 2012; DB plans, including annuity reserves, stood at $4.3 billion.

At $3.6 trillion, 401(k)s make up almost 71% of DC plans, with mutual funds accounting for 57% of those assets. TDFs — of which 91% are in DC plans — and IRAs grew 29% in 2012, according to ICI. Clearly, DC plans and IRAs are growing at the expense of DB and government plans, accounting for 54% of retirement assets in 2012 — up from 51% in 2007. During that period, DB plans and government plans both declined from 23% to 22%.

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