Retirement Assets Down in Q2 2010

A report from the Investment Company Institute shows that between March 2010 and June 2010, retirement assets fell 5.1%, from $16.5 trillion to $15.7 trillion.

According to a press release, The U.S. Retirement Market, Second Quarter 2010 report shows the decline in retirement accumulations reflected market returns. During the second quarter of 2010, equities experienced an 11.4% decline, while bonds returned 3.7%, according to the Standard & Poor’s 500 stock index and the Citigroup Broad Investment Grade Bond Index.  

At the end of the second quarter of 2010, IRAs were a significant component of U.S. retirement market assets, holding $4.2 trillion in assets. Employer-sponsored DC plans held another $4 trillion in assets, of which $2.7 trillion was held in 401(k) plans. Forty-five percent of IRA assets and 51% of DC plan assets were invested in mutual funds.  

Assets earmarked for retirement are a significant component of U.S. households’ financial assets, accounting for 36% of all household financial assets at the end of the second quarter.  

ICI’s analysis includes assets held in private-sector defined benefit (DB) plans, government pension plans, defined contribution (DC) plans—including 401(k), 403(b), and 457 plans—annuities, and individual retirement accounts (IRAs).