IRA Assets Surpass 401(k) Plan Holdings
A survey of 4,000 Americans found that their individual retirement account assets are now greater than in employer-based retirement accounts such as 401(k)s and 403(b)s, according to Cogent Research.
While ownership of both types of retirement accounts are down since 2006, ownership of workplace-based retirement accounts have decreased much more dramatically. Since 2006, IRA ownership has slid by 5%. Meanwhile, ownership of workplace-based retirement accounts has decreased by almost 23%.
Cogent's data showed that while fewer investors may have assets sitting in former employer retirement plans today (24% in 2009 versus 31% in 2008), those who still do are even more likely to plan to roll over those assets into an IRA (45% in 2009 versus 39% in 2008).
The Cambridge, Mass.-based Cogent noted that this is the first time ever since tracking investor allocations that IRA assets have surpassed 401(k)s and 403(b)s.