2024 DC Retirement at a Glance

1. $40 TRILLION- As of the end of Q2 2024, total US retirement assets reached a new high of $40 trillion, surpassing the previous peak of $39.7 trillion recorded at the end of 2021. Retirement assets now account for 32% of all household financial assets, down from a peak of 35% in Q4 2017. (Source: Investment Company Institute)

2. 401(K)S ON “TARGET” - Total assets held in target date mutual funds reached a new high of $1.912 trillion in the second quarter. Employer-sponsored defined contribution plans now hold 68% of all target date fund assets, while the percentage held in IRA accounts remained at a record low of 17%. (Source: Investment Company Institute)

3. ERISA turns 50 - On 9/2/74, President Gerald Ford signed ERISA into law, establishing the Pension Benefit Guaranty Corporation (PBGC). Today, the PBGC covers 32 million participants in close to 25K insured pension plans and is directly responsible for the benefits of 1.4 million participants in failed pension plans. (Source: PBGC)

4. OLDER CONSUMERS HANGING IN THERE - Consumer Confidence declined by the most since August 2021 in September. Within age groups, sentiment varied widely as the index of confidence tracking consumers over 55 was a record 16.5 points higher than the index tracking the cohort between the ages of 35 and 54. (Source: Conference Board)

5. SENIORS SCRAPING TO GET BY - According to the most recent available data, at the end of 2020, 49.6% of adults over 60 had household incomes below the standard needed to afford basic living expenses in their communities, an increase of 4.6 percentage points from 2018. (Source: National Council on Aging)

6. SENIOR LONG STOCKS - US Federal Reserve data reveals that Americans over 70 have a higher concentration of their financial assets in equities and mutual funds (45.1%) compared to any other age group. In contrast, younger Americans, aged 40 and under, and those between 40 and 54, have less than 30% of their financial assets invested in equities and mutual funds. (Source: Federal Reserve)

7. RUNNING ON EMPTY - On average, registered voters believe they need $2.19 million saved for retirement. However, this estimate is far from reality as 30% of registered voters have no retirement savings, and 66% have less than $150,000 saved. Only a small percentage, 15%, have more than $500,000 in retirement savings. (Source: Public Opinion Strategies)

8. LARGEST PUBLIC PENSIONS - The 15 largest public pension funds globally manage $7.6 trillion in assets. Japan’s Government Pension Investment Fund is the largest with $1.62 trillion, nearly double the size of the second-largest fund, South Korea’s National Pension Service. Of the top 15, the US boasts six funds, collectively managing $2.3 trillion. (Source: Statista)

9. BEST US CITIES FOR RETIREMENT - According to an analysis of overall affordability, range of activities, quality of life, and quality of health care, four of the top five US cities for retirement are in Florida: Orlando, Miami, Tampa and Fort Lauderdale. (Source: WalletHub)

QUESTION: The funded status of the 100 largest US public pensions increased from 80.8% in July to 82% in August, representing the fourth straight month of increases. Of the 100 largest public pensions, 15 have funded ratios of 60% or less. How many of the largest 100 public pensions are 100% or more funded?

The answer can be found by calling an MFS representative.