Financial services
providers are increasingly focusing on IRA rollovers to win and retain clients,
and boost assets under management or advisement, says Kevin Chisholm, associate
director at Cerulli Associates.

According to the
Boston, MA-based research firm’s latest report, Evolution of the Retirement Investor 2013: Influencing and Addressing
Retirement Savings, retirement rollover contributions reached $321 billion
as of year-end 2012. The report finds that rollovers present an opportunity for
both IRA providers and defined contribution plan record-keepers.

“Rollovers to IRAs
will continue to increase as distributions from 401(k) plans increase,” Chisholm
said. “But, many individuals have multiple relationships, so multiple firms
have an opportunity to demonstrate their capabilities to potential clients.”

While most assets
traditionally rolled into IRAs, Cerulli said it is encouraging defined contribution plan record-keepers
to focus on keeping assets within the 401(k) market by “touting the benefits of
employer-sponsored plans and also by engaging individuals who are changing
jobs.”

The insights follow
those from a recent Pershing white paper, which said that, as the Baby Boomer generation retires, advisors will need
help managing the transition of billions of dollars from retirement plans into
rollover IRAs. The paper also looked
at the anticipated regulatory changes that will affect the definition of a
fiduciary, and said IRA rollovers are a “critical client
need,” as well as an important part of advisory businesses (view here).