As of 2023, Defined Contribution Plans for NPISHs and Households in the US stood at approximately $10.6 trillion. In 2024, this is forecasted to rise to $10.884 trillion, marking a year-on-year growth of roughly 2.7%. The trend continues with moderate growth, reaching $12.638 trillion by 2028. The year-on-year growth rates for 2025, 2026, 2027, and 2028 are projected to be 4.09%, 3.89%, 3.71%, and 3.54%, respectively. Over the next five years, the Compound Annual Growth Rate (CAGR) is expected to be about 3.5%.
Future trends to watch for:
- Market volatility and its impact on retirement savings growth.
- Changing demographics affecting participation in contribution plans.
- Evolving regulatory environments and their potential influence.
- Technological advancements in financial management and advice services.
