One-Quarter (25%) of Former Employer-Sponsored Retirement Plan Owner Assets Remain Dormant. One in ten (9%) investors with at least $100,000 in investable assets is likely to roll over a total estimated $280 billion into IRAs this year. One in four (24%) investors has at least one retirement plan with a previous employer where a significant portion (25%) of his/her investable assets still resides. These and other findings are included in Investor Rollover Assets in Motion™, a Cogent Reports study from Market Strategies International.
¡°Although the well-known challenge of investor inertia around Rollover IRAs holds true, the size of the pool of assets in play says it all¡ªthis is a market that providers cannot ignore,¡± said Linda York, vice president in the syndicated division.
While key life events¡ªchanging employers and retiring¡ªremain the top triggers for initiating a rollover transaction, investors who are likely to roll assets report that their top criteria when selecting a Rollover IRA provider are low fees and expenses, followed by an easy process, brand reputation and having an existing relationship with the financial services company.
Fidelity Investments and Vanguard retain their status as the top desired providers for Rollover IRAs amid variability with investor preference in the latest rankings. Three firms¡ªE*TRADE, Ameriprise and J.P. Morgan Chase¡ªstrengthen their market positions and secure placement in the top 10 for Rollover IRA consideration.
¡°Opportunities exist in this very competitive market for the providers who acknowledge investor fee sensitivity and make it easy, especially for existing customers, to transfer idle retirement plan assets into a Rollover IRA,¡± said Julia Johnston-Ketterer, senior director and author of this year¡¯s Investor Rollover Assets in Motion study.
