Assets in 529 college savings plans more than doubled over the past 10 years to $471 billion, including an estimated $12 billion in stable value funds. Given that robust growth trend—and recent legislation expanding how 529 accounts can be used—industry experts suggest both numbers will continue to climb in the years ahead.

Defined contribution plans have focused for decades on helping American workers save money for retirement. Now they’re scrambling to help workers figure out how to manage and spend down their savings once they do retire. The ABA Retirement Funds, a not-for-profit organization that sponsors a retirement program for law firms and other organizations in the legal community, is pioneering a novel approach to this new challenge. It centers around the creation of a special tier of investment options for participants in or near retirement. 

The stable value industry faces a challenging interest rate environment but still has many opportunities for growth. Stable value providers envision greater use of the asset class in college savings plans and in products designed to generate retirement income.