Fri, Feb 12, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli Projects U.S. Retirement Market to Reach $22tln by 2016, IRAs to Comprise 33%

Monday, January 30, 2012
Opalesque Industry Update - Total asset levels in the U.S. retirement market have grown 9.6% from 2009 to 2010, totaling $15.8 trillion as of end of year 2010. Cerulli estimates total retirement markets to grow modestly (around 1%) to $16 trillion in 2011 with continuing market recovery, and will total nearly $22 trillion in 2016. Total IRA assets represent 29.7% of total retirement market assets currently, and as large DC plan rollovers continue to fuel asset levels, IRAs will encompass 33% of the total retirement market by 2016.

"The decisions Baby Boomers make regarding DC plan balances as they enter retirement continue to greatly impact DC and IRA balances. While much of the industry has discussed in-plan retirement income solutions, few of these solutions have been implemented by DC plans. Since there has been little to entice Baby Boomers to stay in-plan, they continue to roll large balances into IRAs," comments Alessandra Hobler, analyst in Cerulli's retirement practice.

The research explains that without action to prevent these distributions, rollovers will continue to fuel IRA assets, furthering their significant marketshare of the total market, beyond 2016.

When considering the other segments of the retirement landscape, the increased focus on individual retirement savings buoy both public and private DC markets as the process of saving for retirement is continually simplified with features such as automatic enrollment, auto escalation, and simplified investment options such as target-date funds. On the other hand, the shift away from private DB plans will continue to decrease its marketshare. However, increased use of LDI strategies is putting money into motion for asset managers, which presents interesting opportunities.

Cerulli's annual analysis of the retirement landscape, which has been in circulation for a decade, provides firms with a single resource for data and analysis on the entire U.S. retirement market, including private and public DC and DB, and IRA. Cerulli's complex modeling, which requires multiple inputs ranging from proprietary survey sources to regulatory filings, provides reliable projections and sizings for business planning and strategy development.

(press release)

These findings and more are from The Cerulli Quantitative Update: Retirement Markets 2011.. CLICK HERE to request a copy of this research.

Headquartered in Boston with offices in London and Singapore, Cerulli Associates provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.

BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise