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Study: Most Retirees Handle Rollovers Themselves

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NU Online News Service, Feb. 28, 2005, 8:09 p.m. EST

Most wealthy boomers plan to roll over their qualified retirement plans without the benefit of professional advice.[@@]

About 70% of wealthy boomers have rolled over their current 401(k) plans and other qualified retirement plans, according to a study by researchers at Bain & Company, New York. Most of those rollovers will take place without professional financial advice, meaning that boomers will shift $250 billion into individual retirement accounts without professional counseling, the researchers report.

Bain researchers surveyed 415 retirees and preretirees ages 55 to 70 with average annual incomes of $100,000 or more.

Even though 80% of the “mass affluent” near-retirees use a financial advisor, only 30% get help from their advisors with retirement plan rollover decisions, the Bain researchers report.

The researchers found that half of those who have rolled assets out of employer-based retirement plans also buy other financial products. That flow of assets could create about $19 billion to $38 billion in sales opportunities over the next 5 years, Bain estimates.