IRA rollovers continue to grow at a steady pace, according to Cerulli’s latest report, “Retirement Markets 2013: Data & Dynamics of Employer-Sponsored Plans.” In 2012, there were an estimated $321.3 billion in IRA rollovers, up 7.3% from the previous year; Cerulli estimates that 2013 will be even larger, at $357.7 billion, up 11.3%.
At the end of 2013, the ICI estimated that there were $6.5 trillion in IRAs. When combined with DC plans, the total includes more than half of the $23 trillion in U.S. retirement assets. Most of the money is coming from DC plans; as the Cerulli report states, “the lack of retirement income component on a widespread basis in DC plans means assets will continue to roll to IRAs, which will drive future growth in that market.”
The largest sector of what Cerulli calls “retirement advisors” comes from the insurance world because they are associated with insurance record keepers. Speaking off the record, one insurance provider said that they are frustrated with plan advisors who refuse to engage with most participants when those participants separate from their employers. The provider is considering further leveraging their affiliated BDs.
