Cerulli Associates Release Quantitative Update on Retirement Markets

Cerulli Associates has released its 2003 Quantitative Update on Retirement Markets in a Cerulli Report Release. The report addresses the fact that public and private retirement assets represent a growing percentage of total financial assets held by households, and that

By None

Cerulli Associates has released its 2003 Quantitative Update on Retirement Markets in a Cerulli Report Release. The report addresses the fact that public and private retirement assets represent a growing percentage of total financial assets held by households, and that financial firms have a responsibility to address the needs of those holding retirement assets. According to the release, the 2003 update is expanded in scope from previous years to include private defined benefit, 457, state and local government, and Federal Thrift Savings retirement plans, in addition to covering private defined contribution plans and individual retirement accounts (IRAs).

With more than 140 exhibits, the study incorporates analysis on multiple retirement markets, including market sizing and projections; net cash flows; plan segmentation; participant demographics; asset allocation and investment vehicle usage; and distribution channels. The new data unique to this year’s report includes a detailed examination of the private DB market; Section 457 analysis; public retirement market coverage; leading 401(k) providers by assets, plans and participants; and 401(k) plan sales metrics.

The key findings from the analysis include the expectation that annual rollover contributions will grow to $468 billion by 2012; the ratio of distributions to contributions in 401(k) plans jumped to 87% in 2002; the top 20 401(k) providers control 85% of the assets; only 52% of total DB plan participants are active; and 50% of assets in 457 plans are controlled by those aged 50 and older.

«