Advisors get nearly half of their business from IRAs, including simplified employee pension plans (SEPs), a report released in February by Cerulli Associates found.
Bing Waldert, director at Cerulli, said this is important for asset managers who want to acquire rollover assets, as advisors capture larger rollovers than direct providers on average, and large balances typically stay with existing advisor relationships.
Rollovers are the main driver of the IRA market, the Cerulli report found, with $321 billion transferred into IRAs in 2012 and an expected increase to $400 billion by 2015.
The 50- to 59-year-old cohort presents the largest opportunity to capture assets, Cerulli found. The report put rollover assets for that group at more than $144 billion and 37% of accounts in 2012.