33% of household assets held in retirement accounts, ICI reports

The accounts held $13.4 trillion, with $2.3 trillion in 401(k) plans

Americans held $13.4 trillion in retirement assets at the end of the first quarter, accounting for 33% of all household assets in the United States, the Investment Company Institute reported today.

Individual retirement accounts held $3.4 trillion, ICI said in its report, “The U.S. Retirement Market, First Quarter 2009,” < http://www.ici.org/pdf/09_q1_retmrkt_update.pdf>. Employer-sponsored defined contribution plans also held $3.4 trillion, of which $2.3 trillion were in 401(k) plans.

Forty-four percent of IRA assets and 45% of defined contribution plan assets were invested in mutual funds.

Between Dec. 31, 2008, and March 31, retirement assets fell 4.4%, from $14.1 trillion to $13.4 trillion. During the first quarter, the Standard & Poor’s 500 stock index declined by 11% and the Citigroup Broad Investment Grade Bond Index gained 0.2%.

Target date mutual funds managed $159 billion at the end of the quarter, compared with $164 billion at the end of the fourth quarter. Almost 90% of the assets in those funds were in retirement accounts, the Washington-based ICI said.

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