As many baby boomers reach retirement age, total retirement market assets swelled to $21.5 trillion in 2014, up 9.6 percent from just one year ago, according to Spectrem Group’s Market Insights Report 2015. Keeping pace with the increase in retirement market assets, defined contribution plans continue to dominate the private sector and have grown at an average annual rate of 10.2 percent over the past five years, reaching $5.3 trillion in 2014 (twice has much as corporate defined benefit plans).
Additional findings from the Market Insights Report include:
· Driven primarily by rollovers from qualified plans, IRA assets have grown at an average annual rate of 11.4 percent over the past five years. Representing nearly one-third of the retirement market, they are poised to become the fastest growing segment.
· Assets in the not-for-profit (NFP) market sector reached a new high, totaling over $1 trillion for the first time at the end of 2014.
The retirement market isn’t the only sector experiencing growth – the number of U.S. households with a net worth of $1 million or more, not including primary residence (NIPR), reached a new high of 10.1 million in 2014. The total is an increase of nearly 500,000 households, up from 9.63 million in 2013.
· Retirement Plan Assets Grow
For charts and a full summary of the 2015 Market Insights retirement data or to schedule an interview with Spectrem Group, contact Natalie Rowland at firstname.lastname@example.org or 708-434-5006.
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