Asset levels are up $2.1 trillion over the same quarter a year ago, analysis
from the Investment Company Institute (ICI) shows, bringing retirement savings to 34% of
all household financial assets in the U.S.
Assets in individual retirement accounts (IRAs) totaled $6
trillion at the close of the third quarter, an increase of 4.6% over the previous quarter. For employer-sponsored defined contribution (DC) plans,
assets rose 4.4% in the third quarter to $5.6 trillion, according to the ICI.
Private sector defined benefit (DB) plans ticked up to $2.9
trillion in assets at the end of the third quarter. Government pension
plans—including federal, state and local government plans—reached $5.4 trillion
in total assets, a 3.7% increase over the previous
The ICI research shows annuity reserves maintained
in outside retirement holdings accounted for $1.9 trillion.
Breaking down the DC numbers, more than 70% of the $5.6
trillion held in DC plans belonged to 401(k) accounts. Mutual funds managed
$3.3 trillion, or 59%, of assets held in 401(k), 403(b) and other DC plans at
the end of the third quarter.
For IRAs, 46% of total assets (or $2.8 trillion), belonged
to mutual funds at the end of the third quarter.
Another interesting figure included in ICI’s analysis is the
$573 billion held in target-date funds (TDFs), an
increase of 6.1% since June. Retirement accounts
held the bulk of target-date mutual fund assets—with 89% of TDFs accessed through
DC plans and IRAs.
the end of the same quarter a year ago, TDF assets are up $113 billion, or about 25%.