The retirement investment business is changing. Are you ready?
Our findings could impact the way you do business—and the way clients do business with you.
Growth of investors keeping assets in their DC plan at least one year after retiring.1
Research suggests1 that retirement plans are increasingly becoming the destination for investors after they retire.
Over the last four years of available data, participants who separated from service at age 65 or older retained more assets within their DC plans than in prior years. For example, in 2015, 42% of DC account assets remained in plans at least one year after retirement. That figure steadily grew to nearly 60% over the last 4 years.
Our observations are supported by data from the University of Michigan Health and Retirement Study. Among participants who retired during the two-year period from 2016 to 2018, only 13% withdrew their entire plan balance or rolled over to an individual retirement account.
This contrasts with the conventional view of DC plans as strictly accumulation vehicles and has implications for any financial professional working with retirement investors.
The Visualize Retirement program will equip you with presentations, a vision workbook, and an ongoing stream of quick-hitting insights drawn from actual retiree behavior to help you determine your clients’ retirement income goals and preferences.
Senior Defined Contribution Advisor
Retirement income expert Michael Doshier specializes in helping financial professionals reposition themselves with clients and prospects. Equipping them to better:
1 Source: T. Rowe Price, 2020 Defined Contribution Consultant Study: Retirement Environment. Percent of account value retained by defined contribution (DC) plan participants, age 65 or older after one calendar year following separation from service in retirement plans administered by T. Rowe Price Retirement Plan Services, Inc.
The STAR Awards program was developed in 1996 to honor best-in-class industry efforts in the areas of marketing and communications. Since rebranding from the Mutual Fund Education Alliance (MFEA) to IMEA, the organization’s STAR program has evolved to focus on excellence in education by investment managers across investor, financial professional, and retirement channels. T. Rowe Price’s Visualize Retirement program won the Investor Experiential Education Large+ Asset Level category for firms with AUM levels of $150B+. The Investor Experiential Education category includes efforts that educate, inform, serve and/or communicate with investors in educational efforts that involve direct interaction with investors such as seminars, live webinars, trade shows, group presentations, etc. Participants were evaluated based on the following scorecard criteria: effectiveness, messaging, educational value, innovation, user experience, and design.
All investments are subject to market risk, including the possible loss of principal.
This material is provided for general and educational purposes only and not intended to provide legal, tax, or investment advice. This material does not provide recommendations concerning investments, investment strategies, or account types; it is not individualized to the needs of any specific investor and not intended to suggest any particular investment action is appropriate for you, nor is it intended to serve as the primary basis for investment decision-making.