Yet another report is highlighting the huge amount of losses in retirement plans. During the economic crisis, retirement plans have lost nearly a quarter of their value, according to a new Spectrem Group report, Retirement Market Insights 2009.
The report notes that total retirement market assets, including defined contribution (DC) and defined benefit (DB) plans, tumbled 24% to $7.86 trillion in 2008, down from $10.3 trillion in 2007. Assets held in DC plans, which includes 401(k)s, fell 21% in 2008 to $3.8 trillion, a drop from $4.8 trillion in 2007. However, the study notes that DC plans continue to increase in popularity, with DC plans as a percentage of all retirement assets expanding to a record 49% in 2008.