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 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.