U.S. Retirement Asset Roundup

RetirementAs of June 30, 2013, total U.S. retirement assets were $20.9 trillion, an 11% increase from the second quarter of 2012. These retirement assets consisted of $5.7 trillion in IRAs (estimated), $5.3 trillion in defined contribution (DC) plan assets, $5.2 trillion of government pension plans (including federal, state and local plans), $2.8 trillion private-sector defined benefit (DB) plans, and $1.8 trillion in annuity reserves (outside of retirement accounts). The majority of the year-over year gain was achieved through IRAs (12% growth), government plans (+12%), and DC plans (+13%). Private DB plans and annuity reserves were up only 8% and 6%, respectively.

According to the Investment Company Institute, retirement savings accounted for 34% of all household financial assets in the U.S. at the end of the second quarter. The average 401(k) account balance has nearly doubled since the Financial Crisis. Target date mutual fund assets totaled $540 billion at the end of the second quarter, a 26% increase from the second quarter of 2012 ($427 billion). Retirement accounts held 90% of the target date mutual fund assets primarily through DC plans and IRAs.

 

U.S. Retirement Market

Summary

  • Total U.S. retirement assets as of June 30, 2013 were $20.9 trillion, an 11% increase from the second quarter of 2012.
  • According to the Investment Company Institute, retirement savings accounted for 34% of household financial assets in the U.S. at the end of the second quarter of 2013.
  • Average 401(k) account balances have nearly doubled since the Financial Crisis.
  • Target date mutual fund assets totaled $540 billion at June 30, 2013, a 26% increase year-over-year.
  • 90% of target date fund assets were held through DC plans and IRAs.

 

Retirement savings accounted for 34% of household financial assets in the U.S. at the end of the second quarter of 2013. Want to learn more? Download our free booklet, Retirement Income: Shape Your Own Reality.

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The opinions expressed are those of our investment professionals, and are no guarantee of the future performance of any American Century Investments® portfolio. This information is not intended to serve as investment advice; it is for educational purposes only.