5.9% Projected Growth in DC Assets
Private-sector defined contribution (DC) will grow at an annual rate of 5.9% from 2008 to 2013, though that is a lower rate compared with previous projections based on worsening net flow forecasts, according to Cerulli Associates.
Reported by Nevin E. Adams
Going forward, Cerulli forecasts slower growth in private defined benefit (DB) than in public DB, with private DB growing at an annual rate of 3.6% through 2013 and public DB growing at a rate of 5.3%.
However, the retirement plan vehicles with the highest projected growth rate over the next five years are individual retirement accounts (IRAs). Cerulli projects that the five-year compounded annual growth rate (CAGR) for IRAs is expected to be 8.5%, surpassing other retirement segments such as private DB and DC programs, as well as public retirement markets, according to the report, “Cerulli Quantitative Update: Retirement Markets 2008.”