How You Can Retain Assets in the IRA Rollover Market

Over the past year, $489 billion was eligible for rollover and $245 billion was actually moved into IRAs.

Spectrem Group estimates that the amounts eligible for and transferred to IRA rollover accounts will increase at 10-12% annually over the next five years.

Retaining rollover assets already part of a plan is very possible when you work with plan sponsors and make it an integral part of your relationship with them. Indeed, when rolling over assets, 20% of plan participants choose to stay with their plan provider. Getting the blessing of the plan sponsor is key to retaining these assets.

For providers that have already received the blessing of their sponsors, and offer advisory services or have programs in place to encourage rollovers into a provider managed vehicle, like an annuity, this presents an opportunity to establish a deeper relationship with sponsors. For those who do not have the sponsor buy-in yet, this is an opportunity to add another level to the service you can provide their participants.

For participants, convenience is a major consideration in the rollover process, which puts providers in the best position, already having the participant’s ear, so to speak. Providers that can make the rollover process as easy and convenient as possible have a better chance of retaining assets. Working with the plan sponsor will help you provide a competitive rollover experience.

Particularly because of the wave of retiring Baby Boomers and the younger generation’s proclivities to job switching, the IRA rollover market is only going to grow in the future. Developing a strategy to retain a chunk of those dollars is a key step for any provider firm. Use the action steps provided to retain a larger percentage of the rollover dollars:

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