Retirement assets grew nearly 3% from the prior quarter andstood at $29.2 trillion as of Sept. 30, accordingto the latest data from the InvestmentCompany Institute. ICI also says that U.S. retirementassets now account for one-third of all household financialassets.
|Individual retirement accounts
Assets in individual retirement accounts totaled $9.5 trillionat the end of the third quarter, a jump of 3% from the secondquarter. Defined contribution plan assets ended theperiod at $8.1 trillion, up 3.3% from June 30.
|Defined benefit plans
Government defined benefit plans (including federal, state andlocal government plans) were $6.1 trillion in Q3, a 2.9% increasefrom the earlier quarter. Also, private-sector DB plans held $3.2trillion of assets, with annuity reserves outside of retirementaccounts accounting for another $2.3 trillion.
|Defined contribution plans
For employer-sponsored DC plans, assets totaled $8.1 trillion asof Q3 — of which $5.6 trillion were held in 401(k)plans.
|Other private-sector DC plans accounted for $550 billion, with$1.0 trillion in 403(b)s, $332 billion in 457s, and $606 billion inthe Federal Employees Retirement System's Thrift Savings Plan.
|Mutual funds represented $3.7 trillion — or slightlymore than two-thirds — of assets in 401(k) plans at theend of Q3. Equity funds, the most common type held in 401(k)s,accounted for $2.3 trillion of that, with hybrid funds—including target-date funds — accounting for $1.0 trillion.
|IRAs
The Q3 total for IRAs amounted to $9.5 trillion in assets, withclose to half ($4.5 trillion) held in mutual funds. Equity fundswere the most common category of funds held in IRAs, at $2.6trillion; they were followed by hybrids, at $949 billion.
|Target-date funds
TDFs accounted for $1.2 trillion as of the end of Q3, anincrease of 4.0% from Q2. Retirement accounts held the bulk of TDFassets, with more than 85% held in DC plans (67% of the total) andIRAs (20%).
|READ MORE:
|Real estate purchases in IRAs expand to newareas
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Janet Levaux
Janet Levaux, MA/MBA, is Editor in Chief of ThinkAdvisor & Investment Advisor. She's covered the financial markets since 1991 and advisors since 2005. Janet studied at Yale, Johns Hopkins SAIS and St. Mary's College of California. She's also lived and worked in Asia, Europe and Latin America, raised two sons, and won a Neal Award for top news coverage in 2020.
