Of the possible rollover actions to take upon employment termination, leaving money in an employer’s defined contribution plan is the most common choice among recent retirees and pre-retirees, according to a new survey.
LIMRA, Windsor, Conn., published this finding in a summary of results from a survey, “Keys to Success in the Rollover Market,” that polled 1,177 respondents, ages 55-70, who have who have at least $10,000 in their DC plan accounts. The report aims to understand the factors (including participant and provider characteristics) that determine whether individuals will choose to keep their DC plan money with the plan provider.
Compared to LIMRA’s previous rollover study, the proportion staying in the plan has increased, possibly due to the 2008-2009 market crash and uncertain economic conditions leading some individuals to defer taking action, the survey surveys. A greater tendency to leave money in the plan implies that more assets will be available to providers deploying in-plan retention strategies