Despite difficult market conditions, assets that are held in U.S. retirement plans have nearly doubled in value since 1997, according to a study conducted by Watson Wyatt Worldwide.
The Washington firm said in a study that was released Thursday that assets held in U.S. pension funds, 401(k)s, individual retirement accounts, and other retirement savings vehicles increased from $7.9 trillion in 1997 to $15 trillion in 2007.
Retirement asset growth began slowing worldwide last year.
In the 11 countries with the largest workplace retirement systems, retirement assets grew about 2% last year, versus 10.5% the previous five years and 7.4% in the previous 10.
U.S. short-term returns were better with retirement assets growing 8.3% last year and 10.9% over the past five years. U.S. retirement assets make up an estimated 60% of assets in the 11 countries, according to the study.
In the United States, 59% of retirement plan assets are invested in equity products, 23% in fixed-income products, including bonds, and 17% in alternative assets, including hedge funds amd private equity products.
The amount of assets that are held in equity products has remained relatively stable over the past 10 years, but the portion held in alternative investment products has increased (from 9% in 1997) and the share in bonds and fixed-income products has declined (from 33% in 1997).
The makeup of U.S. retirement assets has changed considerably over the past 10 years.
The share of assets in defined contribution plans, which includes both 401(k) plans, and individual retirement accounts, has increased to 56%, from 47%, since 1997, the study said.
