Today the College Savings Plans Network (CSPN) released its Year-End 529 Report for 2016. As chair, I always enjoy seeing the progress made over the year, and this year did not disappoint. Results of the report show a record level of total investments, number of accounts, average account size, and more.
Based on data CSPN collected from 108 savings and prepaid tuition programs across the country, the 2016 Year-End Report shows:
- Total investments by U.S. families in 529 plans reached a record level of $275.1 billion, representing a growth in assets of $21.9 billion.
- The total number of 529 accounts increased 3.2% over the past 12 months, growing from 12.5 million in December 2015 to 12.9 million as of December 2016.
- The average 529 account size increased in 2016 to $21,383 as of December 2016, a 5.9% increase since the end of 2015.
- Contributions grew to nearly $27 billion in 2016.
- More than 54% of all 529 accounts received contributions in 2016.
These findings demonstrate that American families are selecting 529 plans to save for college, and continue to make contributions to the plans in preparation for the increasing cost of tuition. In addition, the numbers show there is still a lot of value placed on a college degree and confidence in the 529 savings model.
I encourage you to read the full report here. We hope this inspires you to start or continue to save!
About the Author:
Young Boozer, Chair, CSPN, is serving in his second term as the 39th State Treasurer of Alabama. He also serves as chair of the board for Alabama’s Prepaid College Tuition Program (PACT), Alabama’s 529 college savings program (CollegeCounts) and Enable Savings Plan Alabama. As State Treasurer, Boozer is also responsible for the cash management duties of receiving, depositing and investing all state funds, bond management, unclaimed property, and management of the state’s collateral pool for public funds deposits. He also plays an essential role in managing the Alabama Trust Fund (ATF), Alabama’s $3 billion investment fund built from the proceeds of the sale of the state’s offshore oil and gas reserves.