Investing

Assets in DC Plans Grew 10% from 2014 to $6.7 Trillion in 2016

Across both DB and DC plans, retirement assets total $19.1 trillion, according to data from a Federal Reserve report on total retirement asset holdings and flows.

By Lee Barney editors@strategic-i.com | March 10, 2017

Across public and private defined benefit (DB) and defined contribution (DC) plans total assets grew 8% from $17.6 trillion in 2014 to $19.1 trillion in 2016, according to data from The Federal Reserve.

Total financial assets in DC plans were $6.7 trillion in 2016, up 10% from $6.1 trillion in 2014. Private DC plan assets in 2016 were $5.7 trillion, up 9.6% from $5.2 trillion in 2014.

In terms of flows by asset class, for private DC plans, the most inflows in 2016 were to mutual funds ($24 billion), followed by debt securities ($22 billion) and corporate and foreign bonds ($12 billion).

For federal government DC plans, their biggest purchases in 2016 were debt and Treasury securities (both at $16 billion) and assets in the Thrift Savings Plan ($12 billion). The biggest purchases of state and local DC plans in 2016 were: unallocated insurance contracts ($8 billion) and miscellaneous assets ($7 billion).