Total U.S. retirement assets reached another record for the quarter ended Sept. 30, increasing 3.9% during the quarter to $21.7 trillion, according to the Investment Company Institute, which publishes quarterly retirement asset data.
Defined contribution plans accounted for $5.56 trillion in assets in the third quarter, up 4.4% from the second quarter. The largest retirement category, individual retirement accounts, rose 4.6% to $6 trillion, according to an ICI news release.
Government pension plan assets — including federal, state and local plans — increased 3.7% to $5.37 trillion, while assets in private defined benefit plans were up 3.1% to $2.9 trillion. Annuity reserve assets rose 2.1% to $1.83 trillion.
Within DC retirement plans, $4 trillion was held in 401(k) plans, up 5% from the second quarter.
Mutual funds managed $3.3 trillion, or 59%, of DC assets. Target-date mutual funds were up 6.1% to a record $573 billion. Defined contribution plans account for 69.5% of target-date mutual fund assets, while IRAs represent 19.7% and other investors account for 10.2%, all relatively similar to the second quarter.