Individual Account Retirement Plans Main Source of Income for Private Sector Retirees
Individual account retirement plans make-up the largest portion of current and future private-sector retirees’ retirement incomes, finds research from the Employee Benefit Research Institute. As for public-sector employees, defined benefit (DB) plans are still the dominant type of retirement plan, but defined contribution plans are increasing.
The study found the percentage of families that own an IA retirement plan increased from about 28.1 percent in 2013 to 29.9 percent in 2016. In addition, the percentage of families with an IA plan from a current or previous employer increased from 50.4 percent in 2010 to 52.1 percent in 2016.
Average account balances also rose, from $75,300 in 1992 to $232,502 in 2016.
When it comes to types of IA accounts, regular IRAs accounted for the largest percentage, but rollover IRAs had the largest share of assets.