Less than half of affluent investors are happy with their employers' retirement plans, according to data released by Cogent Research on May 11.
Gen X investors are least likely to express satisfaction with their employers' plans, followed closely by baby boomers.
“Keeping plan participants happy can have a multiplier effect,” said David Feltman, managing director of Cogent Research, in a statement. “Satisfied plan participants are three times more likely to roll dollars into an IRA with their current 401(k) or 403(b) provider than are those that are not happy,” he adds.
Not only that, but rollover assets present a "sizable opportunity" for plan providers, according to Cogent. One-quarter of affluent investors have assets in a former employers' retirement plan; of those, almost half, representing about $350 billion, say they'll likely roll those assets into an IRA "sometime within the next year."
There's good news for some firms though. TIAA-CREF, Vanguard, Fidelity and T. Rowe Price ranked high among affluent investors.
Not only does Fidelity have a high satisfaction rate (55%), but 20% of affluent investors say they'll probably roll assets into a Fidelity account. Vanguard, Wells Fargo, Chuck Schwab and Merrill Lynch were also popular destinations for rollover assets.
Feltman referred to Fidelity's "deep penetration" in the 401(k) market, highly satisfied participants, and strong retail brand, "all of which predispose large numbers of affluent investors to roll their assets to the firm," as reasons for the firm's success.
Less successful, perhaps, are pre-retirees who neglect to hire a financial advisor to help plan for retirement. A LIMRA report released May 10 found almost two-thirds of pre-retirees are planning for retirement on their own, despite 54% of investors who have an advisors' help reporting confidence in their ability to retire with the lifestyle they choose.