U.S. retirement assets to reach $22 trillion by 2020, LIMRA predicts

According to new research from LIMRA, investible retirement assets of U.S. households aged 55+ will nearly double to $22 trillion by 2020. The findings are included in LIMRA’s new Retirement Income Reference Book (RIRB), which was published in December 2012.

“There is a huge opportunity for the financial services industry to help Americans identify how much income they will need in retirement, develop a plan for investing their portfolio to generate income, while continuing to grow their assets,” said Jafor Iqbal, associate managing director, LIMRA Retirement Research.

In 2010, U.S. households age 55+ held $12 trillion, according to LIMRA. Based on U.S. Census projections, the assets held by this cohort will grow to $22 trillion that they will directly invest in products for generating retirement income. The number of Americans who receive income from an employment-based pension plan is on the decline, and there will be many more retirees who will have most of their retirement assets invested in retirement plans. The study estimates that almost two-thirds of these assets will be directed towards products that will generate income for them in retirement.

Source: LIMRA news release, February 4, 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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