Alongside the fast-diminishing outlined profit pension system and the financially shaky Social Safety program, the important third leg on the proverbial “retirement stool” in america is made up of outlined contribution plans — amongst which the 401(okay) stands out as by far the biggest and most generally adopted plan sort.
The truth is, as famous in a giant new 401(okay) plan benchmarking report printed by Judy Diamond, complete property held in 401(okay) plans now stand close to $7 trillion, whereas the 403(b) market solely handed the $1 trillion mark for the primary time in 2021.
Judy Diamond, a enterprise unit of ThinkAdvisor’s mum or dad firm, ALM, yearly refreshes its trade rankings of employer-sponsored plans via an examination of each energetic 401(okay) plan within the nation. The purpose of this analysis is to offer an goal, data-oriented view of various industries, how their collective 401(okay) plans are performing, and the way that compares to different trade groupings.
By offering a breakdown based mostly on trade and measurement, the report permits particular person employers and advisors to benchmark efficiency in opposition to the suitable peer group. For the 2024 report, Judy Diamond researchers examined roughly 610,000 energetic 401(okay) plans with a minimum of $3,000 in plan property and a minimum of one energetic plan participant.
This knowledge comes from the 2022 plan 12 months, and represents the newest knowledge obtainable on the time of this writing. These plans cowl about 68 million eligible staff. In complete, this equates to about $6.4 trillion in property — or the overwhelming majority of cash sitting at the moment in 401(okay) plans.
Notably, the Judy Diamond report breaks the monetary companies and insurance coverage trade into three segments. One consists of the monetary advisor and funding administration trade, the second is the insurance coverage brokerage trade, and the third is “different” monetary and insurance coverage companies.
See the slideshow for a overview of the ten industries with the very best retirement plan efficiency throughout key metrics together with common account balances, participation charges, price of return, price of employer and worker contributions and worker longevity.