US - Retirement assets in the US reached US$14.5trn in 2005, meaning they now account for more than one third of the entire nation's household financial assets, an Investment Company Institute study has found.
Retirement assets increased by around $900bn in 2005 alone, and have more than doubled in a decade, having been worth $7trn in 1995. The significant growth is further highlighted by the fact retirement assets only account for 23% of household financial assets in 1985.
Fuelling that growth has been the trend towards individual control of retirement assets, with the 51% of retirement savings now invested in defined contribution (DC) plans and Individual Retirement Accounts (IRAs).
The study also found that nearly two-thirds of retirement assets were held in employer-sponsored plans, including both DB and DC plans.
Clearly, Americans are focused on saving for retirement as a top priority. Our research continues to indicate that individuals are building retirement nest eggs by using employer-sponsored plans and IRAs, said ICI senior economist Sarah Holden.
By Damian Clarkson
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