FRC Sees Strong 529 Plan Growth

College savings plans have seen a 56% growth in assets over the past 24 months, according to industry data from Financial Research Corporation (FRC).

Investor contributions to 529 savings plans have increased by 35% over the past two years, FRC reported, adding that broad market indexes have been positive over the last two years while volatility has decreased.

Investors have shifted back into longer-term investment products as well. FRC found net outflows of $1 trillion from money market mutual funds over the last two years.

“The dramatic growth of college savings plans is nearly 30% higher than previously projected. It is also worth noting that new accounts opened during this same time period increased by 15%,” said Paul Curley, Director of 529 College Savings Research at FRC.