Retirement Savings Increase 4% in Q207

Retirement assets grew about 4% between March 31 and June 30, an ICI news release said. The combined retirement savings now accounts for nearly 40% of all U.S. household financial assets.

According to ICI, assets in lifecycle funds reached $152 billion during the quarter, 89% of which was held in retirement accounts. Meanwhile, lifestyle funds managed $221 billion as of June 30, up from $204 billion as of March 31, with nearly half of that total in retirement accounts.

Americans held $4.4 trillion in all defined contribution plans, of which $3 trillion was held in 401(k) plans, ICI data showed. Those figures are up from $4.2 trillion and $2.8 trillion, respectively.

Mutual funds managed $2.3 trillion in assets in 401(k), 403(b), and other defined contribution plans at the end of the second quarter, up from $2.2 trillion at the end of the first quarter. Mutual funds manage 52% of DC plan assets.

IRAs held more than $4.6 trillion of assets as of June 30. Mutual funds managed 47% of IRA assets.

The report covers assets held in private-sector pension plans, both defined benefit and defined contribution; government pension plans; annuities; and individual retirement accounts (IRAs).

Complete data can be found at http://www.ici.org/pdf/retmrkt_update.pdf.