Cerulli Associates estimates that public and private definedcontribution plan assets will reach $7.3 trillion by 2017.

In the Boston-based global analytics firm’s latest report, U.S.Retirement Markes 2012: Market Sizing, Projections, andSegmentation of Public and Private DB and DC, it provides acomprehensive view of the size and segmentation of public andprivate U.S. retirement markets, including defined benefit, definedcontribution and IRA.

"The 401(k) market is the largest driver of growth in theprivate DC industry, and it remains the largest component of themarket," said Alessandra Hobler, a Cerulli analyst. "401(k) planshave become the primary savings vehicle for many private sectoremployees. As automatic features continue to gain traction, furtherimplementation of these features may increase participation anddeferral rates, contributing to plan asset growth."

"Within the public DC market, 403(b) plans were historicallyused as a supplemental savings vehicle, however as more retirementincome responsibility is placed on the employee, 403(b) plans havebeen more ‘401(k)-like,’ acting as a primary savings vehicle formany large nonprofit organizations," she said.

The DC market is becoming increasingly competitive for assetmanagers. Firms with consistent outperformance and knowledge of thedistribution landscape across plan types and plan size segmentswill be the most successful.

Headquartered in Boston with offices in London and Singapore,Cerulli Associates provides financial institutions with guidance instrategic positioning and new business development.