Assets in 401(k) plans reached a record $3.075 trillion in 2010, according to the latest Marketplace Update report from the Society of Professional Asset-Managers and Record Keepers (SPARK).
“Assets in 401(k) plans increased approximately 13% in 2010 due to favorable investment results and net cash flow higher than recent trend levels,” said Bob Wuelfing, President of RG Wuelfing & Associates, Inc., which prepared the report. “Strong performance across all equity sectors, especially the U.S. market over the second half of 2010, coupled with positive returns in the bond markets, helped push total retirement market assets to an estimated $16 trillion by year-end 2010,” he said.
Highlights of the report include:
- There were 536,000 401(k) plans, covering more than 74 million workers in the U.S. in 2010, compared with 510,500 plans and 73.4 million participants reported in 2009.
- 401(k) participants had nearly 70% of their account balances in stocks at the end of 2010, including the equity portion of balanced, life cycle, risk-based asset allocation and target date funds.
- Total assets in IRAs reached almost $4.5 trillion in 2010.
- Between 20,000 and 22,000 new 401(k) plans will be formed in 2011, primarily among small companies.
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