Individual retirement account assets are now greater than in employer-based retirement accounts such as 401(k)s and 403(b)s, according to a Cogent Research study of 4,000 affluent and high net worth Americans.
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 good news here is that while many Americans are losing access to 401(k) plans as a result of job separation, choosing to bypass their 401(k)s, or simply retiring they are making smart decisions regarding where to move their money-namely putting it in an IRA." said Meredith Lloyd Rice, Cogent Senior research director and author of the study, "2010 Investor Assets in Motion: IRA & Retirement Marketplace Opportunities."
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.
