Thu, Nov 23, 2017
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. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s

  2. Fund Profile - The Tiger of Silicon Valley: Glen Kacher's sizzling hedge fund[more]

    From Forbes.com: When you live and work in a town where the median home costs $2.7 million and hobnob with the executives of billionaire factories like Facebook and Tesla, it's easy to see why you might think technology stocks are invincible. So far in 2017, the Nasdaq Composite index has gained 25%

  3. Launches - Asset manager launches Europe's first bitcoin mutual fund, Prime Capital Aviation Debt Fund enables aviation debt investments for institutional investors[more]

    Asset manager launches Europe's first bitcoin mutual fund From Coindesk.com: A French asset manager has announced the launch of Europe's first mutual fund centered around bitcoin. Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutio

  4. Legal - Consumers say hedge fund financed illegal tribal lending, New York's highest court permits shareholder of a Cayman-incorporated company to bypass Cayman law and bring derivative action in New York[more]

    Consumers say hedge fund financed illegal tribal lending From Law360.com: Vermont residents on Tuesday hit a hedge fund with a proposed class action in federal court alleging it helped concoct a sham tribal payday lending scheme meant to skirt laws preventing companies from charging cons

  5. Investing - Tech still hedge funds' sweetheart sector: Goldman Sachs, Hedge funds haven't been this leveraged to buy stocks since the bull market began, Top financials hedge fund details short bet against Morningstar, Fund CRC presents an offer for Carige's consumer credit unit, Hedge funds sell shares in Altice USA after difficult quarter[more]

    Tech still hedge funds' sweetheart sector: Goldman Sachs From Reuters.com: Tech stocks remain the largest net sector exposure for equity hedge funds, which are set to deliver their strongest returns since 2013, Goldman Sachs said on Wednesday in a note on the industry's most and l