IRAs are the most-used retirement savings vehicle in the U.S., according to a study detailed in a planadviser.com article
The report, created by financial analytics firm Cerulli Associates, concluded that IRAs could hold 35 percent of all retirement assets, or about $9 trillion, by the end of 2018, up from the current 32 percent.
Two factors are cited for the popularity and projected growth of this type of retirement account:
“First, the lack of widespread use of in-plan retirement income solutions means assets already accumulated in defined contribution (DC) plans will shift to IRAs as more Baby Boomers leave the work force and start drawing on savings. Also important to the trend, the research shows, is the continuing loss of market share by defined benefit (DB) plans as more employers look to reduce or eliminate pension liabilities.”
The article is geared toward financial advisors but offers insight that any investor could find interesting. Wondering how the total amount of IRA assets in the U.S. could affect you? If you have a self-directed IRA, those funds could be used to make more investments. For more details, see this guide on The Private Bank Concept