Total U.S. retirement assets reached $35.4 trillion as of March 31, up 3.5% from Dec. 31, according to the Investment Company Institute.
The first-quarter jump in retirement assets, which accounted for 31% of all household financial assets in the United States as of the end of March, is directly attributed to the 7.5% rise in the S&P 500 index during the first three months of 2023. Last year the S&P 500 index fell 20%.
Breaking the ICI’s Q1 report down further, assets in individual retirement accounts totaled $12.5 trillion at the end of the first quarter, an increase of 4.3% from the end of the fourth quarter. The ICI said 42% of IRA assets, or $5.2 trillion, was invested in mutual funds, primarily in equity funds ($2.9 trillion).
Meanwhile, the report showed defined-contribution plan assets totaled $9.8 trillion at the end of the first quarter, up 5% from the end of 2022, of which $6.9 trillion was held in 401(k) plans. Digging deeper, mutual funds managed $4.3 trillion, or 62%, of the assets held in 401(k) plans, with equity funds once again leading the pack with $2.5 trillion in assets.
As for public employees, government defined-benefit plans held $7.7 trillion in assets at the end of March, a 0.5% increase from the end of 2022, the ICI said. Total U.S. retirement entitlements were $41.8 trillion, including $35.4 trillion of retirement assets and an additional $6.4 trillion of unfunded liabilities, according to the ICI report.
A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.
Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.
Some in the industry say that more UBS financial advisors this year will be heading for the exits.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
