U.S. Retirement Assets Reach $26 Trillion
By the end of the first quarter of 2017, U.S. retirement assets amounted to $26.1 trillion, according to the Investment Company Institute
(ICI). That’s a 3.2% increase over where things stood at the end of last year.
Furthermore, says ICI, those retirement assets constituted just over one-third of all household financial assets.
The assets at the end of the first quarter broke down in this manner:
|| Total Assets,
|Change from End of
4th Quarter 2016
|| $8.2 trillion
| Defined Contribution Plans
|| $7.3 trillion
| Defined Benefit Plans, Public Sector
|| $5.5 trillion
| Defined Benefit Plans, Private Sector
|| $3 trillion
| Annuity Reserves
|| $2.1 trillion
The report offers finer details on DC plans:
|Type of DC Plan
||Assets, March 31
| 401(k) Plans
|| $5 trillion
| 403(b) Plans
|| $932 billion
| Other Private Sector Plans
|| $565 billion
| Federal Employees Retirement System Thrift Savings Plan
|| $484 billion
| 457 Plans
|| $290 billion
Investments in mutual funds figured heavily in the first quarter, the ICI says. They accounted for $3.2 trillion of 401k plans’ assets and $3.9 trillion of the assets contained in IRAs.
While retirement assets grew, unfunded liabilities amounted to $4.2 trillion by the end of the first quarter, says the ICI. It further reports that unfunded liabilities are a bigger factor for federal DB entitlements than any other kind of entitlements, amounting to 54%. They comprised 32% of state and local DB plan entitlements and 13% of private sector pension plan entitlements.