Total household assets increased 16% last year, according to the 2014 "Portrait of U.S. Household Wealth: Market Sizing, Segmentation and Product Ownership" report by Hearts & Wallets. Seniors are feeling particularly wealthy, the report, released Wednesday, found.
Total investable assets topped $41 trillion at the end of 2013, according to the report, up from $35 trillion the prior year. The report noted that at least part of that is due to a change in the way pension benefits are accounted for. "Instead of funded benefit, promised benefit is now counted as household wealth, resulting in a more than $3 trillion wealth increase for government pensioners," according to the report.
Even so, investors are saving more. Retirement savings account for one-third of all assets at almost $14 trillion. Those between ages 65 and 74 added over $1 trillion to their total retirement assets, the report found. Retirement assets for that age group reached $3.5 trillion by year-end 2013, up from $2.3 trillion.
Retirement savings for all age groups increased, outpacing even (albeit very slightly) total household assets at 17%. Hearts & Wallets noted that in 2013, retirement assets grew faster "than at any time since the Great Recession when retirement assets decreased from $10.5 trillion to $8.1 trillion."
IRAs make up the lion's share of retirement assets, according to the report, with $6.5 trillion invested in those accounts. Although they have more assets overall, IRAs grew at the same rate as private DC plans, increasing assets 20% since 2012.
