The Investment Company Institute's annual report on the U.S. retirement market revealed that retirement assets invested in mutual funds reached a record $3.1 trillion in 2004. The report also showed that, at the same time, all tax-advantaged retirement savings totaled a record $12.9 trillion.
IRAs and defined contribution plans, the two largest components of the U.S. retirement market, continued to outpace the growth of other types of retirement plans. The combined growth rate in 2004 was 13%, compared with 7% for other retirement plan assets. And, according to the report, they now account for more than half of all retirement assets, up from less than 40% in 1990.