"Traditional" Pension Assets Lost Dominance A Decade Ago, IRA And 401(k) Have Long Been Dominant

Where are bulk of private-sector retirement assets held in the United States? By a substantial margin - and for many years - individual retirement accounts (IRAs) have held more funds than any other financial vehicle, followed by defined contribution plans (primarily 401(k) plans).

So-called "traditional" defined benefit pension plans were displaced a decade ago by defined contribution plans in terms of assets held. The most recent data from the nonpartisan Employee Benefit Research Institute (EBRI) show that about 61% of private-sector retirement assets currently are held in defined contribution (DC) plans, compared with 39% in "traditional" defined benefit (DB) pensions. In fact, as data from EBRI show, assets held in DC plans first surpassed DB pension assets in 1997 - almost 10 years ago.

"Traditional" Pension Assets Lost Dominance A Decade Ago, IRA And 401(k) Have Long Been Dominant
Source: Insurance News Net