A new study by the Investment Company Institute notes that Americans had $17.6 trillion invested for retirement at 2007 year-end. The study says that figure is up $1.1 trillion from 2006, with growth in IRAs and employer-sponsored defined contribution plans.
While increased savings are good, look carefully at that last statement: "growth in...employer-sponsored defined contribution plans" [emphasis added.] What this also indicates is that employer-sponsored defined benefit plans--traditional pensions--have declined. That's not such good news for many Americans looking forward to retirement.
Obviously, the growth in the number and size of individual retirement investment accounts is also good news for another group: the operators of mutual and other funds that the Investment Company Institute represents.
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