Judy Diamond Associates Analysis Reveals Enormous Opportunity for Financial Advisors Seeking 401(k) Rollover Clients

Washington, D.C., June 3, 2014 – Judy Diamond Associates, the 401(k) plan intelligence provider of leading financial advisors, brokers and fund companies, today released an analysis of the retirement industry that revealed that approximately one-fifth of the assets held in large 401(k) plans are held by retirees or pre-retirees who have not yet rolled out of their plans. The research indicates that there is an enormous opportunity for financial advisors to assist works transitioning into new retirement plans.

The study looked at the number of retirees still receiving benefits from or entitled to receive benefits from 14,508 401(k) plans with at least 100 participants. The 7.4 million retirees – out of a total of 62 million participants covered in the study – held an estimated $ 640 billion in assets in their 401(k) plans. That figure represents an estimated 22% of the $2.9 trillion in total plan assets included in the study. For reference, the study’s sample looked at 87% of all participants and 85% of all plan assets in 401(k) plans nationwide in 2012, the most recent year for which a complete set of data was available.

“Employers continue to incur costs when retirees remain in their plans and the retirees themselves may not be best served by the structure and mix of investments in their 401(k) plans after they exit the workforce,” said Eric Ryles, managing director of Judy Diamond Associates. “Especially with increasing numbers of baby boomers preparing to retire, the financial advisors who know how to find them now and offer guidance on the transition to individual retirement accounts, such as Roth IRAs, will be in the best position to grow their market share.”

The research was conducted using the Retirement Plan Prospector database. Retirement Plan Prospector is an intuitive and comprehensive online sales prospecting and plan analysis tool, providing insights to the defined contribution and defined benefits markets. Financial advisors who are interested in expanding their 401(k) rollover business can use the database to find plans in their territories with large numbers of retirees still receiving benefits.

Judy Diamond Associates based this research on the most recently available 401(k) plan disclosure documents released by the Department of Labor, which are available in its Retirement Plan Prospector database.

For more information about this research, please contact us at www.judydiamond.com/about/contact or follow us on Twitter @401kFacts.

Media Contact
Regina Marie Glick
[email protected]

Sales Contact
Eric Ryles
[email protected]

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