Fewer people leaving their 401(k) plans are keeping their money there, according to a JPMorgan study of participants in their DC plans. In 2008, 19% kept their money, compared with 17% in 2012. Participants seem to be more proactive — wanting more control of their retirement assets and someone to talk to about financial planning. With plans growing along with the market, employers may be more interested in shedding these retirees and limiting liability.
The opportunity for advisors, whether working on the plan or just working with individuals in the plan, is to be more proactive in helping their clients consolidate their assets and create a sustainable stream of income. Another opportunity is the roll-in market — as individuals move to another plan, it might make sense to consolidate assets, which only increases the pool of money that plan advisors have to work with.
