Annuities Still Dominant 403(b) Investment

Data published by Spectrem Group in April shows nearly half (48%, or $343 billion) of 403(b) plan assets were invested in fixed annuities as of the end of 2009. Nearly a third (32%, or $226 billion) of assets were invested in variable annuities.  

The percentage of 403(b) assets invested in mutual funds increased from 18% ($110 billion) at the end of 2008 to 20% ($143 billion) at the end of 2009.  

In addition, Spectrem Group reported that 44% of 403(b) assets at the end of 2009 ($313 billion) were in plans sponsored by higher-education organizations. More than a quarter (26%, or $183 billion) were held by plans in the public K-12 market.  

Health care organizations’ 403(b)s made up 19% ($137 billion) of total 403(b) assets at the end of 2009. Seven percent of assets ($51 billion) were in private K-12 plans, and 4% ($27 billion) were in “other” 403(b) plan types.