Defined benefit, defined contribution and individual retirement account assets had a net decline of about 4% last year, to a combined $10.9 trillion at year-end 2001, a new SPARK study revealed. Defined benefit plan assets dropped by 6%, to $4.5 trillion; defined contribution assets fell by about 3%, to $3.5 trillion; and IRAs were down 3%, to $2.9 trillion, according to the Society of Professional Administrators and Recordkeepers. Also, an estimated 45% of the $182 billion in potential 401(k) distributions is expected to be rolled into IRAs this year.
The study also found that few defined contribution plan participants are using any investment advice. While 30% of all defined contribution participants have access to investment advice through their plans, fewer than 25% of those who have access complete the process, and far fewer return to use the service again.