Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

401(k)s and Retirement Plans - US - March 2009

This report examines the state of 401(k) and other retirement plan markets, especially in light of the difficult economic times. Themes examined in this report include:

  • The steep decline in the stock market over the past year has put serious dents into Americans’ retirement dreams. Americans are less confident now about their futures than they have been in decades
  • Baby Boomers, who are the first generation to have been told to rely on 401(k)s and IRAs for a comfortable retirement, are perhaps in the most difficult straits
  • Innovations have – and are still – being developed and introduced by financial services companies that are designed to make it easier to plan and save for the future
  • 401(k) plans are under scrutiny from legislators and academics. The argument is that they were never meant to be the sole retirement support for workers, and they are being criticized for being structured poorly for that purpose

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

    • What you need to know
      • Data sources
        • Consumer survey data
          • Abbreviations and terms
            • Abbreviations
              • Terms
              • Executive Summary

                  • Industry highlights
                    • Investor confidence
                      • The regulatory environment
                        • Advertising and promotion
                          • Innovations
                            • The retirement investor
                              • The gender gap
                              • Insights and Opportunities

                                • Key points
                                  • Segmentation is key
                                    • Baby Boomers need help
                                      • Second wave Boomers
                                        • And so do younger people
                                          • Women are under-represented in the retirement market
                                            • African-Americans are behind as well
                                                • Figure 1: Types of financial planning done, by race/ethnicity, August 2007
                                              • Small business represents big opportunity
                                                • Rollover IRAs are a bright spot—and are expected to get brighter
                                                • Inspire Insights

                                                    • Trend: Customization—one size no longer fits all
                                                      • Implications
                                                        • Trend: Customization—Females and African-American men
                                                          • What we’ve seen
                                                            • Implications
                                                            • Market Size and Forecast

                                                              • Key points
                                                                • How popular are retirement plans?
                                                                  • Figure 2: Retirement plan assets, year-end 2000-07
                                                                • Government employees
                                                                  • 401(k)s are the most popular
                                                                    • The message about retirement savings has been heard
                                                                      • Demographics support continued strength
                                                                        • Figure 3: Population of each age group, 2007 and 2040
                                                                        • Figure 4: Percentage of workers aged 65-69, 1987-2005
                                                                    • Competitive Context

                                                                      • Key points
                                                                        • Consolidation
                                                                          • More participants may be up for grabs
                                                                          • Segment Performance

                                                                            • Key points
                                                                              • Figure 5: Retirement plan assets (in trillions), by plan segment (year-end, 2007)
                                                                            • 401(k) plans
                                                                              • Figure 6: Characteristics of 401(k) plans, 2007
                                                                            • Size of 401(k) accounts
                                                                              • Figure 7: Distribution of 401(k) account balances, 2007
                                                                              • Figure 8: Year-end average account balances, 2000-07
                                                                            • Age distribution of 401(k) holders
                                                                              • Figure 9: How 401(k) accounts are distributed, by age, 2007
                                                                            • How 401(k)s are invested
                                                                              • IRAs
                                                                                  • Figure 10: Number and share of U.S. households owning IRAs, 2000-08
                                                                                  • Figure 11: Growth of IRA assets, 2000-07
                                                                                • Age distribution of IRA owners
                                                                                  • Figure 12: Age distribution of IRA owners, 2008
                                                                                  • Figure 13: Where IRA assets are held, 1981 and 2007
                                                                                  • Figure 14: Multiple ownership of IRAs, March 2008
                                                                              • Market Drivers

                                                                                • Key points
                                                                                  • Boomers are feeling the worst
                                                                                    • Figure 15: Confidence in ability to retire comfortably, change in the past 12 months, by generation, 2008
                                                                                  • People are spending more time planning
                                                                                    • Figure 16: Amount of savings workers estimate they will need for retirement, 2008
                                                                                  • Impact of auto-enrollment and auto-escalation
                                                                                    • Demise of the company match
                                                                                      • Legislative developments
                                                                                        • 401(k)s and the democrats
                                                                                        • Leading Companies

                                                                                          • Key points
                                                                                            • Who are the leaders?
                                                                                              • Figure 17: Largest DC managers, ranked by total DC assets in millions, as of 12/31/07
                                                                                          • Innovations and Innovators

                                                                                            • Key points
                                                                                              • Credit cards to the rescue
                                                                                                • Debit cards offer 401(k) loans
                                                                                                  • Easy access to retirement advice
                                                                                                    • Free retirement consultations
                                                                                                      • Innovations in retirement distribution
                                                                                                      • Advertising and Promotion

                                                                                                        • Key points
                                                                                                          • Overview
                                                                                                            • Notable print advertising
                                                                                                              • Figure 18: Charles Schwab’s ad for real life retirement services, Jan.-Feb. 2009
                                                                                                              • Figure 19: Ad for retirement seminar, New York Life, December 2008
                                                                                                              • Figure 20: Ad for a no-annual fee IRA from Wells Fargo, promoting commission-free online trading, December 2008
                                                                                                              • Figure 21: Ad from Ameritrade offering WealthRuler, September 2008-February 2009
                                                                                                              • Figure 22: Ad promoting annuities from John Hancock, December 2008
                                                                                                              • Figure 23: Ad for T. Rowe Price’s SmartChoice Rollover IRA™, August 2008-February 2009
                                                                                                              • Figure 24: An ad for Fidelity’s personal retirement annuity product, July 2008
                                                                                                            • Direct mail
                                                                                                                • Figure 25: Direct mail piece from New York Life, September 2008
                                                                                                                • Figure 26: Direct mail piece from New York Life, September 2008
                                                                                                                • Figure 27: Direct mail piece from New York Life, September 2008
                                                                                                                • Figure 28: Direct mail piece from Fidelity promoting 401(k) enrollment, November-December 2008
                                                                                                                • Figure 29: Direct mail from AARP offering retirement counseling from AARP representatives, December 2008
                                                                                                              • Broadcast advertising
                                                                                                                • Figure 30: Charles Schwab ad, 2008
                                                                                                                • Figure 31: Charles Schwab—I may not be a financial genius, but that doesn’t mean I’m an idiot, 2008.
                                                                                                                • Figure 32: TIAA-CREF ad, 2008
                                                                                                                • Figure 33: Fidelity’s retirement income program ad, 2008
                                                                                                                • Figure 34: AXA Equitable annuity—the 800 lb. gorilla in the room ad, 2008
                                                                                                            • The Consumer

                                                                                                              • Key points
                                                                                                                • Who has a retirement plan—and what kind do they have?
                                                                                                                  • Figure 35: Type of retirement accounts owned, by gender, December 2008
                                                                                                                  • Figure 36: Type of retirement accounts owned, by age, December 2008
                                                                                                                  • Figure 37: Type of retirement accounts owned, by income, December 2008
                                                                                                              • The Consumer—retirement account balances

                                                                                                                    • Figure 38: Personal retirement account balances, by gender, December 2008
                                                                                                                    • Figure 39: Personal retirement account balances, by age, December 2008
                                                                                                                    • Figure 40: Personal retirement account balances, by race/Hispanic origin, December 2008
                                                                                                                    • Figure 41: Personal retirement account balances, by income, December 2008
                                                                                                                    • Figure 42: Household retirement account balances, by gender, December 2008
                                                                                                                    • Figure 43: Average household retirement account balance, by age, December 2008
                                                                                                                    • Figure 44: Average household retirement account balance, by income, December 2008
                                                                                                                    • Figure 45: Average household retirement account balance, by race/Hispanic origin, December 2008
                                                                                                                • The Consumer—Attitudes about Retirement and Retirement Saving

                                                                                                                    • Figure 46: Where retirement income is expected to come from, by gender, December 2008
                                                                                                                    • Figure 47: Where retirement income is expected to come from, by age, December 2008
                                                                                                                    • Figure 48: Where retirement income is expected to come from, by race/Hispanic origin, December 2008
                                                                                                                    • Figure 49: Where retirement income is expected to come from, by income, December 2008
                                                                                                                • The Consumer—Retirement Planning and Investment Decisions

                                                                                                                      • Figure 50: Type of retirement planning already done, by gender, December 2008
                                                                                                                      • Figure 51: Type of retirement planning already done, by age, December 2008
                                                                                                                      • Figure 52: Type of retirement planning already done, by race/Hispanic origin, December 2008
                                                                                                                    • Monitoring retirement accounts
                                                                                                                      • Figure 53: Monitoring of retirement accounts, by gender, December 2008
                                                                                                                      • Figure 54: Monitoring of retirement accounts, by age, December 2008
                                                                                                                      • Figure 55: Monitoring of retirement accounts, by income, December 2008
                                                                                                                    • Attitudes about retirement investing
                                                                                                                      • Figure 56: Engagement in retirement investing, total agree, by gender, December 2008
                                                                                                                      • Figure 57: Engagement in retirement investing, total agree, by race/Hispanic origin, December 2008
                                                                                                                      • Figure 58: Engagement in retirement investing, total agree, by income, December 2008
                                                                                                                    • Satisfaction with retirement plan options
                                                                                                                      • Figure 59: Satisfaction with retirement plan options, total agree, by gender, December 2008
                                                                                                                      • Figure 60: Satisfaction with retirement plan options, total agree, by income, December 2008
                                                                                                                    • Understanding of retirement options
                                                                                                                      • Figure 61: Understanding of retirement investment options, total agree, by gender and age, December 2008
                                                                                                                      • Figure 62: Understanding of retirement investment options, total agree, by income, December 2008
                                                                                                                  • The Consumer—Interest in Alternative Retirement Investments

                                                                                                                      • Lifecycle or lifestyle funds
                                                                                                                        • Figure 63: Who invests in lifecycle or lifestyle funds, by gender, December 2008
                                                                                                                        • Figure 64: Who invests in lifecycle or lifestyle funds, by age, December 2008
                                                                                                                        • Figure 65: Who invests in lifecycle or lifestyle funds, by race/Hispanic origin, December 2008
                                                                                                                        • Figure 66: Who invests in lifecycle or lifestyle funds, by income, December 2008
                                                                                                                        • Figure 67: Who invests in a managed account, by age, December 2008
                                                                                                                      • ETFs
                                                                                                                        • Figure 68: Interest in ETFs, by gender, December 2008
                                                                                                                        • Figure 69: Interest in ETFs, by age, December 2008
                                                                                                                        • Figure 70: Interest in ETFs, by race/Hispanic origin, December 2008
                                                                                                                        • Figure 71: Interest in ETFs, by income, December 2008
                                                                                                                        • Figure 72: Interest in ETFs, by the presence of children in household, December 2008
                                                                                                                    • The Consumer—Who They Trust For Advice

                                                                                                                        • Figure 73: Who is trusted to give retirement advice, by gender, December 2008
                                                                                                                    • Cluster Analysis

                                                                                                                        • Uninformed and unprepared
                                                                                                                          • Regretful, low-savers
                                                                                                                            • Interested, prepared, over-achievers
                                                                                                                                • Figure 74: Investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 75: Ownership of retirement plan, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 76: Total amount in personal retirement accounts, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 77: Total amount in household retirement accounts, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 78: Where retirement income is coming from, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 79: How often retirement account is monitored, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 80: Interest in retirement investing, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 81: Interest in investing in ETFs, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 82: Type of retirement planning already done, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 83: Who trusted to give retirement planning advice, by investment or retirement vehicle owner clusters, December 2008
                                                                                                                                • Figure 84: Investment or retirement vehicle owner clusters, by gender, December 2008
                                                                                                                                • Figure 85: Investment or retirement vehicle owner clusters, by age, December 2008
                                                                                                                                • Figure 86: Investment or retirement vehicle owner clusters, by income, December 2008
                                                                                                                                • Figure 87: Investment or retirement vehicle owner clusters, by race, December 2008
                                                                                                                                • Figure 88: Investment or retirement vehicle owner clusters, by Hispanic origin, December 2008
                                                                                                                            • Appendix—Additional Consumer Groups

                                                                                                                              • Who has a retirement plan—and what kind do they have?
                                                                                                                                  • Figure 89: Ownership of retirement plan, by gender and presence of children, December 2008
                                                                                                                                  • Figure 90: Ownership of retirement plan, by marital status and presence of children, December 2008
                                                                                                                                  • Figure 91: Retirement plans owned, by gender and age, December 2008
                                                                                                                                  • Figure 92: Retirement plans owned, by gender and income, December 2008
                                                                                                                                  • Figure 93: Retirement plans owned, by gender and age, December 2008
                                                                                                                                  • Figure 94: Retirement plans owned, by race/Hispanic origin and age, December 2008
                                                                                                                                  • Figure 95: Retirement plans owned, by gender and income, December 2008
                                                                                                                                  • Figure 96: Retirement plans owned, by race/Hispanic origin and income, December 2008
                                                                                                                                • How much is in those retirement accounts?
                                                                                                                                  • Figure 97: Total amount in retirement accounts, by gender and presence of children, December 2008
                                                                                                                                  • Figure 98: Total amount in retirement accounts, by gender and age, December 2008
                                                                                                                                  • Figure 99: Total amount in retirement accounts, by race/Hispanic origin and age, December 2008
                                                                                                                                  • Figure 100: Total amount in retirement accounts, by gender and income, December 2008
                                                                                                                                  • Figure 101: Total amount in retirement accounts, by race/Hispanic origin and income, December 2008
                                                                                                                                • Attitudes about retirement and retirement savings
                                                                                                                                  • Figure 102: Where retirement income is coming from, by gender and presence of children, December 2008
                                                                                                                                  • Figure 103: Where retirement income is coming from, by gender and age, December 2008
                                                                                                                                  • Figure 104: Where retirement income is coming from, by race/Hispanic origin and income, December 2008
                                                                                                                                • Interest in retirement investing
                                                                                                                                    • Figure 105: Interest in retirement investing, by gender and presence of children, December 2008
                                                                                                                                    • Figure 106: Interest in retirement investing, by gender and age, December 2008
                                                                                                                                    • Figure 107: Interest in retirement investing, by gender and income, December 2008
                                                                                                                                  • Monitoring retirement accounts
                                                                                                                                    • Figure 108: How often retirement account is monitored, by gender and age, December 2008
                                                                                                                                    • Figure 109: How often retirement account is monitored, by race/Hispanic origin and age, December 2008
                                                                                                                                  • Types of retirement planning done
                                                                                                                                    • Figure 110: Type of retirement planning already done, by gender and presence of children, December 2008
                                                                                                                                    • Figure 111: Type of retirement planning already done, by race/Hispanic origin and age, December 2008
                                                                                                                                    • Figure 112: Type of retirement planning already done, by gender and income, December 2008
                                                                                                                                  • Satisfaction with retirement plan options
                                                                                                                                    • Figure 113: Satisfaction with retirement investment options, by gender and presence of children, December 2008
                                                                                                                                    • Figure 114: Satisfaction with retirement plan options, by race/Hispanic origin and income, December 2008
                                                                                                                                  • Understanding of retirement options
                                                                                                                                    • Figure 115: Understanding of retirement options, by gender and presence of children, December 2008
                                                                                                                                    • Figure 116: Understanding of retirement options, by race/Hispanic origin and age, December 2008
                                                                                                                                  • Interest in alternative retirement investments
                                                                                                                                      • Figure 117: Interest in lifecycle funds, by gender and presence of children, December 2008
                                                                                                                                      • Figure 118: Interest in lifecycle funds, by race/Hispanic origin and age, December 2008
                                                                                                                                      • Figure 119: Interest in lifecycle funds, by race/Hispanic origin and income, December 2008
                                                                                                                                      • Figure 120: Interest in ETFs, by gender and presence of children, December 2008
                                                                                                                                      • Figure 121: Interest in ETFs, by gender and income, December 2008
                                                                                                                                    • Who is trusted to give retirement planning advice?
                                                                                                                                      • Figure 122: Who trusted to give retirement planning advice, by gender and presence of children, December 2008
                                                                                                                                      • Figure 123: Who trusted to give retirement planning advice, by gender and age, December 2008
                                                                                                                                      • Figure 124: Who trusted to give retirement planning advice, by race/Hispanic origin and age, December 2008
                                                                                                                                  • Appendix: Trade Associations

                                                                                                                                    Companies Covered

                                                                                                                                    • AIG Group (American International Group Inc)
                                                                                                                                    • AllianceBernstein L.P.
                                                                                                                                    • American Association of Retired Persons (AARP)
                                                                                                                                    • American Council Of Life Insurers
                                                                                                                                    • AXA (USA)
                                                                                                                                    • Bank of America Corporation
                                                                                                                                    • Barclays Global Investors, N.A.
                                                                                                                                    • Charles Schwab Corporation
                                                                                                                                    • CitiStreet LLC
                                                                                                                                    • Discover Financial Services Inc.
                                                                                                                                    • Dollar Thrifty Automotive Group, Inc.,
                                                                                                                                    • Employee Benefit Research Institute
                                                                                                                                    • FMR Corp.
                                                                                                                                    • Franklin Resources, Inc.
                                                                                                                                    • Gallup Organization, The
                                                                                                                                    • Greenfield Online
                                                                                                                                    • Hewitt Associates
                                                                                                                                    • ING Group
                                                                                                                                    • Investment Company Institute
                                                                                                                                    • John Hancock Financial Services, Inc
                                                                                                                                    • LIMRA International
                                                                                                                                    • McDonald's U.S.A.
                                                                                                                                    • Mercer Human Resource Consulting
                                                                                                                                    • Merrill Lynch & Co. Inc
                                                                                                                                    • MetLife, Inc.
                                                                                                                                    • Mutual of Omaha Companies
                                                                                                                                    • Nationwide Financial Services, Inc.
                                                                                                                                    • Nationwide Mutual Insurance Company
                                                                                                                                    • New York Life Insurance Company
                                                                                                                                    • Profit Sharing 401(k) Council for America
                                                                                                                                    • Prudential Financial, Inc
                                                                                                                                    • Scottrade Inc.
                                                                                                                                    • Secure Trust Bank
                                                                                                                                    • Society of Professional Administrators and Recordkeepers (SPARK)
                                                                                                                                    • T. Rowe Price Group, Inc.
                                                                                                                                    • TD Ameritrade Holding Corporation
                                                                                                                                    • The PNC Financial Services Group
                                                                                                                                    • The Vanguard Group, Inc.
                                                                                                                                    • Tile Council of America (TCA)
                                                                                                                                    • U.S. Bureau of Labor Statistics
                                                                                                                                    • U.S. Bureau of the Census
                                                                                                                                    • US Department of Labor
                                                                                                                                    • USA Today
                                                                                                                                    • Visa U.S.A. Inc.
                                                                                                                                    • Wachovia Corporation
                                                                                                                                    • Watson Wyatt & Company Holdings
                                                                                                                                    • Wells Fargo & Company

                                                                                                                                    401(k)s and Retirement Plans - US - March 2009

                                                                                                                                    £3,199.84 (Excl.Tax)