The individual retirement account market will account for more than one-third of retirement market assets by year-end 2018, according to new research.
Cerulli Associates discloses this finding in “Retirement Markets 2013: Data & Dynamics of Employer-Sponsored Plans.” This 11th edition of the annual report examines the size and segmentation of public and private U.S. retirement markets, including defined benefit (DB) plans, defined contribution (DC) plans and IRAs.
“The lack of widespread use of in-plan retirement income solutions means assets accumulating in a defined contribution (DC) plan will eventually shift to an IRA,” says Bing Waldert, a director at Cerulli. “We anticipate the market reaching $9 trillion by 2018. The DB market continues to lose marketshare as DC plans garner more adoption and IRAs capture DC rollovers.”