Rollovers May Reach $1.1 Trillion by 2030: LIMRA

By 2030, U.S. retail retirement plan rollovers are expected to reach $1.15 trillion, according to a preview of an upcoming report by the insurance trade association LIMRA. That would represent a 34% increase from the estimated $855 billion in retail rollovers expected in 2025 and nearly double the $612 billion in retail rollovers in 2020.

The average size of rollovers for people aged 50 to 74 more than doubled since 2007, increasing from $101,400 to an estimated $220,000, according to LIMRA analysis of IRS data.

The dramatic increase in transfers from an employer sponsored retirement plan to an IRA is fueled by the growing number of U.S. workers and rising participation in employee retirement plans. The Bureau of Labor Statistics found retirement plans with more than 500 employees saw participation rates rise from 58% in 2010 to 72% in 2024. Participation in smaller plans rose from 51% to 55% in the same period.

Employment turnovers are another major factor, as 60 to 70 million U.S. workers leave their employers every year, according to LIMRA analysis of BLS data.

Workers are also reaching retirement age in record numbers, as an estimated 11,400 Americans turn 65 every day in 2025. In all, more than 4.1 million Americans are expected to turn 65 from 2024 through 2027, according to the Alliance for Lifetime Income.

IRA Provider Selection 

LIMRA also conducted a survey of 607 individuals who completed a rollover from a workplace retirement plan to a traditional or Roth IRA and found that 67% of participants decided on a rollover before leaving their employer. More than one-third decided on a rollover more than three months before leaving their employer.

The top three reasons for respondents opting for rollovers, instead of leaving money in the plan, were control over money (shared by 47% of respondents), seeking better returns on retirement savings (42%) and consolidating assets with one provider (38%).

When LIMRA asked 576 investors why they chose a specific IRA company, the top answer—shared by 73% of respondents—was reputation and recommendations, which includes recommendations from financial professionals and ads. Other reasons included investment options (70%), services and advice (66%) and consolidation (64%).