October 11, 2012
households with $100,000 to $500,000 in investable assets for retirement have no
formal retirement income plan or are not engaged with a financial adviser. ---
findings—from the Cerulli Edge-Retirement Edition, 3Q Issue—are significant,
because they indicate that some investors are entering retirement without an
income plan for the next 20 or so years of their lives, said Tom Modestino,
associate director at Cerulli Associates. “We found that many retirees in the
$100,000 to $500,000 asset range are not working with a financial adviser,”
lining, according to Alessandra Hobler, an analyst at Cerulli, is that this represents
a great opportunity for asset managers, broker/dealers and retirement plan
providers to increase retirement income planning education. Many investors will
welcome the guidance. “This lack of planning can result in rollover
opportunities after retirement,” Hobler said.
Although pre-retirees should be
a primary target for advisers hoping to provide retirement income planning,
more than half of retired investors do nothing in advance of retirement.
While investors in their 50s are
likely to report that they have not gotten around to consulting an adviser,
investors in their 60s are likely to say they do not need retirement advice.
Therefore, the sweet spot for asset managers to target with the message of
retirement income is investors in their late 50s.
Though relationships between providers
and investors are formed through the retirement asset accumulation stage, for
firms that have not had the opportunity to work with investors at this stage
there is still the potential to garner rollover assets at the time of
More information on Cerulli’s research is here.