More than four in ten U.S. households (42%) own individual retirement accounts, amounting to 55.5 million households.
Newly published research from the Investment Company Institute found that traditional and Roth IRAs account for 36% of household financial assets among those owning them, and those individuals were more likely to have engaged in rollover activity, with those owning Roth IRAs also having higher contribution rates.
The study also reveals that IRA holders are generally willing to take some investment risks, with more than 70% holding mutual funds and more than 30% holding ETFs within their IRAs.
Among those with traditional IRAs, 62% of them included rollover assets and 43% of those with rollovers had contributed to their traditional IRAs in addition to the rollovers. Information about rollovers was sought from multiple sources, including financial advisors, employer-provided materials, and content from financial services firms.
Almost nine in ten respondents with traditional IRAs had preserved their entire employer-sponsored retirement plan balance in their most recent rollover. This was mostly due to not wanting to leave assets with their previous employer, consolidation of assets, and desire for more investment options.
In the tax year 2022, two in ten traditional IRA-owning households made contributions, while twice as many Roth IRA owners did so.
The ICI report, The Role of IRAs in US Households’ Saving for Retirement, 2023, included two surveys conducted in mid-2023 that also found that around two-thirds of traditional IRA–owning households in mid-2023 indicated that they have a multicomponent strategy for managing income and assets in retirement.
MyComplianceOffice's AI-assisted surveillance links employee chats on Slack and Telegram with prediction market trades as Wall Street tightens rules
Elsewhere, Raymond James absorbs a family-run practice from Commonwealth into its independent channel, while RBC welcomes a father-son tandem formerly from UBS.
Fuel-driven inflation drove the supersized adjustment, but advocates say retirees are still losing ground as trust fund insolvency nears.
State mandates and plan complexity are opening doors for financial advisors in the 401 market.
New LIMRA data reveal a stubborn advice gap that financial professionals are well-positioned to close.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
