Conning Study: Annuities Account for Almost Half of DC Plan Assets

At the end of 2011, the report states, individual and group annuities held 46% of all defined contribution plan assets. Conning estimates there was an additional $7.3 trillion in combined individual retirement account and defined contribution plan assets.

“Now, insurers have a growing opportunity to help individuals turn those assets into retirement income,” says Scott Hawkins, analyst at Conning Research & Consulting. “Of course, these assets are attracting other competitors, primarily mutual funds that have also helped investors accumulate retirement assets. Insurers need to respond to that competition.”