Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Saving for Retirement

Cogent: Affluent Favor IRAs For Retirement Savings

Your article was successfully shared with the contacts you provided.

Wealthy Americans now hold more assets in individual retirement accounts than they do in workplace-based retirement arrangements such as 401(k) plans and 403(b) plans.

Ownership of both types of retirement accounts is down since 2006, but ownership of workplace-based retirement accounts has fallen much more dramatically than for IRAs, according to Cogent Research L.L.C., Cambridge, Mass.

Affluent Americans now have 31% of their assets in IRAs and 25% in employer-sponsored retirement plans, Cogent says

Much of the money that investors once kept in employer plans is now in IRAs and, to a lesser extent, bank accounts, Cogent says.

Cogent is basing those conclusions on results from a national survey of 4,000 affluent and high net-worth U.S. residents.

IRA penetration has fallen just 5% since 2006, while the number of workplace-based retirement accounts has fallen 23%, Cogent reports.

About 45% of the affluent investors who still had assets in employer plans in 2009 planned to roll the assets into IRAs, up from 39% in 2008, Cogent says.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.