Retirement Assets Drop $630 Billion in Two Years
Pensions & Investments (06/02) Vol. 8, No. 6 p.1; Jacobius, Arleen

In 2000 and 2001, the private retirement market lost 11 percent, or $630 billion, according to a study by Cerulli Associates. Private defined benefit plans suffered the most, losing 14.1 percent, while defined contribution plans lost 10.9 percent of their assets. The Economic Growth and Tax Relief Reconciliation Act of 2001 will help retirement plans grow this year, Cerulli forecasts; the law is expected to add $54.7 billion to the retirement market by 2006, and slow the decline in net flows when baby boomers retire. The Cerulli study found that 401(k) plan participants saw an average $9,290 loss in their accounts. Individual retirement accounts fared better than most but still lost $86 billion over both years.

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