Both pools of assets were over three times what they were at the beginning of the 1990s. Americans are using mutual funds, annuity contracts, and stocks as personal and retirement investments in a significant way. There is continuing discussion in Congress and on the campaign trail regarding the use of personally chosen securities for a portion of one's Social Security retirement fund account. The retirement plan market breaks out in another way. Although IRA plans get less attention, the growth in IRA assets increased at the same pace as all other defined contribution plans.
Smaller plans tend to use mutual funds and annuity contracts for their investments and services.
Professional management 4. Record keeping 5. Cost It is economically unfeasible for pension advisors and managers to sell and service the smaller employer plans. On the other hand, the sponsors and underwriters of mutual funds and annuity contracts provide many of the same services to both individuals and smaller retirement plans, making the sales and service of these plans both economical and advantageous for the insurance agent and agency. Initial market data suggests that since 1997, contributions to all defined contribution plans have increased significantly and SEP plan participation in particular has increased dramatically.