Jan. 6, 2004 — The amount of assets moving from employer pension plans to individual retirement accounts will double by the end of the decade and a third will wind up in mutual funds, according to a survey by Financial Research Corp.
The financial services consulting company predicts that $2.4 trillion will be rolled over from company benefit plans by 2010, of which about $800 billion will be invested in mutual funds. The forecast is based on the results of a survey of 574 people aged 50-60 who have at least $100,000 in assets available for investment.
The survey also found that investors are more likely to put retirement money into mutual funds than any other investment product. FRC said 61% of those surveyed said they were extremely likely to consider stock and bond funds for retirement accounts. By comparison, 39% said they would consider investing in individual stocks, and 37% said they might target money market funds.