Total IRA assets will likely reach $11.7 trillion by the year 2020, according to new research from Cerulli Associates.
The report, “Evolution of the Retirement Investor 2015,” looked at the following:
- IRA rollovers (traditional, Roth, employer-sponsored)
- retirement income (payout funds, variable annuities with guaranteed withdrawal benefits, target-date funds)
- defined contribution (DC) plan participants
- retail investors (preretiree and retiree)
It also looked at strategies for segmenting and influencing participant behavior.
Among findings detailed in the report is the fact that cash-outs and loan defaults were responsible for $81 billion in lost retirement assets in 2014 as participants sought to find better retirement-related options.
The report suggested that recordkeepers could limit the amount of that outflow by offering better retirement-related options to participants.
In addition, as participants age, the likelihood of rollovers rises; participants over age 50 represent the vast majority of assets that were rolled over in 2014 (80 percent).