Retirement Assets Grew 1% in Q2

Total U.S. retirement assets were $20.9 trillion as of June 30, according to a recent analysis from the Investment Company Institute (ICI).

This is up 1% from $20.7 trillion on March 31. Retirement savings accounted for 34% of all household financial assets in the United States at the end of the second quarter of 2013.

ICI research found that assets in individual retirement accounts (IRAs) totaled $5.7 trillion at the end of the second quarter of 2013, an increase of 0.9% from the end of the first quarter. Defined contribution (DC) plan assets rose 1% to $5.3 trillion.

Government pension plans—including federal, state and local government plans—held $5.2 trillion in assets as of the end of June, a 1.4% increase from the end of March. Private-sector defined benefit (DB) plans held $2.8 trillion in assets, and annuity reserves outside of retirement accounts accounted for another $1.8 trillion.

Americans held $5.3 trillion in all employer-based DC plans on June 30, of which $3.8 trillion was held in 401(k) plans. ICI found those figures are relatively unchanged from $5.3 trillion and $3.7 trillion, respectively, as of March 31. Mutual funds managed $3.1trillion, or 58%, of assets held in 401(k), 403(b), and other DC plans at the end of June.

Forty-six percent of IRA assets, or $2.6 trillion, was invested in mutual funds. As of June 30, target-date mutual fund assets totaled $540 billion, an increase of 2.1% in the second quarter. Retirement accounts held the bulk of target-date mutual fund assets, with 90% held through DC plans and IRAs.