Strong asset and revenue growth lie ahead in the not-for-profit and governmental defined contribution markets, according to new Cerulli research.
In its report "U.S. Not-for-Profit and Governmental Defined Contribution Plans 2016: Addressing the 403(b), 457, and 401(a) Markets," Cerulli found that the NFP and governmental DC market is second only to the IRA segment in projected asset growth rate, and that projected negative net flows in the 401(k) market may increase interest in the NFP/governmental DC market as a source of future asset and revenue growth.
The NFP and governmental DC segment, the report said, accounts for approximately 8 percent of the total U.S. retirement market and includes the Federal Thrift Savings Plan (TSP), 403(b), 457, and 401(a) markets. Altogether, that segment's assets are expected to grow at a compound annual growth rate (CAGR) of 7 percent and to reach $2.4 trillion by 2020.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
