Retirement Assets Reach $17.6 Trillion, ICI Reports
July 28, 2008
Despite difficult market conditions, Americans continued to save more for retirement last year, according to the Investment Company Institute.
Assets held in individual retirement accounts and employer-sponsored defined contribution plans, including 401(k) plans, increased 11% from the previous year, the mutual fund trade group said in a report issued Tuesday.
That growth lifted total U.S. retirement assets to $17.6 trillion at yearend. Last year assets held in employer-sponsored retirement plans made up 64% of all U.S. retirement assets, the trade group said. Investors held $4.5 trillion in defined contribution plans, accounting for 40% of employer-sponsored plan assets.
That total included $3 trillion of assets held in 401(k) plans, a 10% increase from a year earlier.
Life cycle and lifestyle funds, which gradually become more conservative as the investor approaches a predetermined retirement date, continued their rapid growth last year, the report said. Assets in those funds reached $421 billion.
Net retirement account inflows into mutual funds increased 23% from a year earlier, to $184 billion. Long-term funds, which include equity, hybrid, and bond funds, garnered the bulk of the inflows, though retirement account flows to money market funds increased to $54 billion.
State Street Launches 10 International ETFs
State Street Global Advisors has launched 10 international sector exchange-traded funds, which began trading Tuesday on the American Stock Exchange. They are benchmarked to a series of Standard & Poor's international equity indexes.
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