American savers held $17.1 trillion in retirement assets at the end of the first quarter of 2008, accounting for nearly 40% of all household financial assets in the United States, the Investment Company Institute reported today.
The finding is from The US Retirement Market, First Quarter 2008. 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). Between 31 December 2007, and 31 March 2008, retirement assets fell about 5.2%, from a revised $18.0 trillion to $17.1 trillion. During that period, total return on equities was 9.4%, while bonds returned 2.6%, according to the Standard & Poors 500-Stock Index and the Citigroup Broad Investment Grade Bond Index.
IRAs held more than $4.5 trillion of those assets; another $4.3 trillion was held in employer-sponsored defined contribution plans, such as 401(k) plans. Mutual funds managed 47% of IRA assets and 50% of defined contribution plan assets at the end of the first quarter.
Lifecycle funds continue their growth during the first quarter: assets in those funds reached $185 billion, nearly 90% of which was held in retirement accounts.
D.C.