Credit: fizkes/Shutterstock.com
Use of the phrase "rollover recapture" might be gaining momentum.
Voya executives have been using the phrase to refer to the battle to hold on to the retirement assets flowing out of 401(k) plans and other defined contribution retirement plans for years.
During the current wave of conference calls that financial services companies are holding to go over results for the third quarter with securities analysts, the phrase came up both during Voya's call and on Corebridge Financial's call.
What it means: The asset managers and advisors that serve employer plan participants might be fighting harder to keep participants' assets from rolling into the retail market.
Voya's perspective: Voya executives said the company is hiring advisors and developing a digital self-service system to increase the company's ability to increase its rollover recapture rate.
At plans sponsored by tax-exempt employers, Voya's typical rollover recapture rate already ranges from 15% to 20%, according to Heather Lavallee, Voya's CEO.
"We do see improvements in rollovers as a key metric," Lavallee said.
Corebridge Financial's view: Kevin Hogan, the Corebridge CEO, said Corebridge has been increasing the number of advisors it has available both to enrollment participants in plans and to retain "out of plan" assets.
Corebridge already helps current and former employer-plan participants with $29 billion in out-of-plan assets, and more in-plan assets will naturally become out-of-plan assets as plan participants age, Hogan said.
"We haven't published a number on our recapture rate," he said, "but it is a very successful part of our business."
Credit: fizkes/Shutterstock
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.