Rebounding markets from a tough fourth quarter in 2018 meant total U.S. retirement assets hit $29.1 trillion in the first quarter of 2019, an increase of 7.4%.
Of that, $8.2 trillion was held in all employer-sponsored DC retirement plans, with $5.7 trillion was held in 401(k) plans specifically, according to the Investment Company Institute.
Retirement assets accounted for 33% of all household financial assets in the United States at the end of March 2019.
Assets in individual retirement accounts (IRAs) totaled $9.4 trillion at the end of the first quarter, an increase of 8.3% from year-end 2018.
Government defined benefit (DB) plans—including federal, state, and local government plans—held $6.3 trillion, a 6.2% increase from the end of December 2018.
Private-sector DB plans held $3.2 trillion in assets, and annuity reserves outside of retirement accounts accounted for another $2.1 trillion.
Defined contribution plans
In addition to 401(k) plans, at the end of the first quarter, $535 billion was held in other private-sector DC plans, $1 trillion in 403(b) plans, $333 billion in 457 plans, and $606 billion in the Federal Employees Retirement System’s Thrift Savings Plan (TSP).
Mutual funds managed $3.7 trillion, or 65%, of assets held in 401k plans.
With $2.2 trillion, equity funds were the most common type of funds held in 401k plans, followed by $1 trillion in hybrid funds, which include target date funds.
Individual retirement accounts
Forty-six percent of IRA assets, or $4.4 trillion, was invested in mutual funds.
With $2.4 trillion, equity funds were the most common type of funds held in IRAs, followed by $929 billion in hybrid funds.
Other developments
As of March 31, 2019, target-date mutual fund assets totaled $1.2 trillion, up 11.6% from the end of December 2018.
Retirement accounts held the bulk (87%) of target date mutual fund assets, with 68% held through DC plans and 19% held through IRAs.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.