The Markets October 20, 2007

Retirement Assets Reach $16.6T

Individuals in the U.S. have $16.6 trillion in retirement accounts, and asset allocation funds are a growing percentage of that savings.
Reported by

ICI reports that the $16.6 trillion figure is for the first quarter of 2007, an increase from $16.4 trillion at the end of 2006, according to new quarterly figures from the Investment Company Institute (ICI).

Plan Types

Individual retirement accounts (IRAs) held the greatest amount of retirement assets in the first quarter, with $4.3 trillion, up from $4.2 trillion at year-end 2006. Mutual funds managed 47% of IRA assets.

The figures show that 401(k) plans held $2.75 trillion of retirement assets, compared to $4.16 trillion that was placed in all employer-based defined contribution plans. Those amounts are up from $2.7 trillion and $4.08 trillion, respectively.

Investment Vehicles

Mutual funds managed $2.16 trillion in assets in 401(k), 403(b), and other defined contribution plans in the first quarter, up from $2.10 trillion at year-end 2006. Mutual funds manage more than half (52%) of all DC assets.

Lifecycle funds managed $133 billion at the end of the first quarter of 2007, compared to $114 billion at year-end 2006, according to the ICI figures, while lifestyle funds managed $204 billion at the end of March, up from $189 billion at the end of 2006.

This is the first time that ICI has released quarterly figures on retirement savings asset totals.

More information is available here.

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