ICI Report on Retirement Funds

Source: Investment Company Institute

The U.S. Retirement Market, 2009

Key Findings

• Total U.S. retirement assets were $16.0 trillion at year-end 2009, up nearly $2.0 trillion, or
14 percent, from year-end 2008. The increase in retirement assets largely was driven by investment
returns. Nearly all asset classes experienced positive total returns in 2009.
• Market performance exerted upward pressure on most retirement plan assets in 2009. Individual
retirement account (IRA) assets rose $651 billion, or 18 percent; and defined contribution (DC) plan
assets rose $635 billion, or 18 percent. Despite net outflows in 2009, state and local pension plan
assets rose $341 billion, or 14 percent, and private-sector defined benefit (DB) plan assets rose
$191 billion, or 10 percent. Total federal government pension assets, which were primarily invested
in nonmarketable government securities, rose 8 percent in 2009.
• Assets earmarked for retirement are a key component of households’ balance sheets. At year-end
2009, retirement assets represented 35 percent of all U.S. households’ financial assets. DC plan
accounts were 9 percent of household financial assets and IRA assets were another 9 percent.
• Employer-sponsored retirement plans play a key role in helping American workers save for
retirement. The bulk (nearly two-thirds) of Americans’ retirement assets were held in employer sponsored
retirement plans at year-end 2009. Furthermore, a significant portion of assets held in
IRAs originated in employer plans and were then transferred (or “rolled over”) into IRAs.
• DC plan and IRA assets invested in mutual funds constituted one-quarter of Americans’ retirement
savings at year-end 2009. More than half of Americans’ retirement savings were held in DC plans
and IRAs at year-end 2009. Mutual funds managed 51 percent of DC plan assets and 46 percent of
IRA assets.

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