Total retirement assets were $20.9 trillion in 2nd quarter 2013, ICI reports

Total U.S. retirement assets were $20.9 trillion at the end of the second quarter of 2013, according to data released by the Investment Company Institute (ICI).

Individual retirement accounts

Assets in individual retirement accounts (IRAs) totaled $5.7 trillion at the end of the second quarter of 2013, the ICI reported. Nearly half (46%) of IRA assets, or $2.6 trillion, was invested in mutual funds.

Defined contribution plans

Americans held $5.3 trillion in all employer-based defined contribution (DC) retirement plans on June 30, 2013, of which $3.8 trillion was held in 401(k) plans. Those figures are relatively unchanged from $5.3 trillion and $3.7 trillion, respectively, as of March 31, 2013. Mutual funds managed $3.1 trillion, or 58%, of assets held in 401(k), 403(b), and other DC plans at the end of June.

Defined benefit plans

The ICI found that government pension plans—including federal, state, and local government plans—held $5.2 trillion in assets, while 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.

Target date mutual fund assets

The ICI also found that as of June 30, 2013, target date mutual fund assets totaled $540 billion. Retirement accounts held the bulk of target date mutual fund assets: 90% of target date mutual fund assets were held through DC plans and IRAs.

Source: ICI, “The U.S. Retirement Market, Second Quarter 2013,” September 30, 2013.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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