Search
 

Only certain demographics contribute to IRAs

The IRA is not being utilized by the vast majority of the people it was originally supposed to help.

By Marlene Y. Satter | Updated on April 26, 2017
Nearly all IRA asset growth is driven by rollovers from employer-sponsored retirement plans, says the Center for Retirement Research. (Photo: iStock)

Individual retirement accounts may cumulatively hold close to half of private retirement assets, but that doesn’t mean that IRAs are as broadly used by multiple segments of the population as they could be—nor does it mean that people are actively contributing to them.

In fact, according to a brief from the Center for Retirement Research at Boston College, nearly all IRA asset growth is instead driven by rollovers from employer-sponsored retirement plans. Individuals’ contributions represent just 13 percent of the new money flowing into IRAs each year.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 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.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.