Total U.S. retirement assets in all public and private plans, as well as individual retirement account assets, will grow at a compound annual rate of 5.9% to more than $20 trillion by the end of 2015, according to estimates by Cerulli Associates.
For 2010, total U.S. retirement assets rose an estimated 4.7% to $15.1 trillion, still shy of the just under $16 trillion high reached at the end of 2007, according to the annual “Cerulli Quantitative Update: Retirement Markets” report.
However, 2011 should end with total retirement assets edging into record territory, on a calendar-year basis, at slightly more than $16 trillion, according to the report.
Goldman Sachs Asset Management and Pacific Investment Management Co. saw the greatest growth in defined benefit assets under management for the five years ended Dec. 31, 2009, with GSAM enjoying a compounded annual growth rate of 22.4% a year to $76.4 billion and PIMCO posting an estimated compounded annual growth rate of 19.6% to $160.4 billion, the report said.
The report predicted a continued rise in IRA rollover contributions from defined contribution plans, with an estimated $319.4 billion in rollovers for 2010 growing steadily to $429.3 billion in 2015.
Public DB plan assets are projected to grow faster than corporate DB plans over the coming five years. The Cerulli report said state and local government DB plans, at $2.7 trillion as of Dec. 31, 2009, should exceed $3.4 trillion by 2014, for a five-year compounded annual growth rate of 4.6%. The annualized growth rate for corporate DB plans is pegged at 1.9%.