The Markets March 18, 2009

Retirement Market Sheds Nearly a Quarter of Assets in 2008

Total U.S. retirement market assets, including both defined contribution (DC) and defined benefit (DB) plans, tumbled 24% to $7.86 trillion in 2008, down from $10.3 trillion the prior year, according to a new report by Spectrem Group.
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Assets held in defined contribution plans fell 21% in 2008 to $3.8 trillion, down from $4.8 trillion the year before, according to a Spectrem press release. However, the popularity of these plans continued to increase overall, with DC plans as a percentage of all retirement assets expanding to a record 49% in 2008.

In the corporate sector specifically, 401(k) plans, which account for 71% of all corporate retirement assets, fell to $1.94 trillion in 2008 (a 23% decline from $2.52 trillion in 2007). However, average annual growth remained positive at 7.8% from 1995 to 2008, the press release said.

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The Spectrem report, “Retirement Market Insights 2009,” is based on data derived from both public and private sources, as well as Spectrem surveys. To order the report, visit www.spectrem.com.

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