In Midst Of National Discussion Around Retirement Savings Rollovers, The American College Releases New Research Examining The Real Behavior Of Consumers Facing This Critical Decision
The study finds that the majority (62%) of recent retirees with substantial assets in a defined contribution plan at retirement chose to move their assets out of the plan. More than eight in ten did so with the help of an advisor. This compares to the 38% who left money in the plan, with only about half (56%) reporting that they have an advisor.
The survey, which explored howâand how wellâindividuals make decisions about what to do with their money, reported that the main reason why retirees rolled over their assets was the probability of improving performance (70%), followed by consolidating assets (68%).  For those who kept money in the plan, over two-thirds (65%) cited liking the investment options. Interestingly, almost half of this group took a more passive approach, reporting that it was easier to leave things the way they are.
"The good news here is that the retirement income message is breaking through," said
More Comprehensive Planning
The survey found that those who rolled money over with the help of an advisor were more likely to have a comprehensive retirement plan (89%, compared with 71% who rolled over without the help of an advisor).  Furthermore, their financial plans were comprehensive, reflecting retirement income planning strategies. Recent retirees with a financial plan report their plan contains an estimate of the amount of income they will receive each year in retirement (95%), a plan for where their income will come from each year in retirement (93%), and an estimate of how long their income will need to last in retirement (93%).  Those who work with advisors are somewhat more likely than those who do not to say that their plan includes targets for how their assets will change over each year (73% vs. 61%). Respondents reported that advisors were less likely to include how to pay for long term care (59%) and legacy planning (55%) in their comprehensive plan.
Retirees also identified another benefit of working with an advisor. Â Eight in ten (80%) agreed that advisors are helpful because they can review the retiree's financial planning and point out things they have missed.
Need Help with Investment DecisionsÂ
The one area of concern reported by retirees related to the investment of assets.  Just one-third (34%) feel extremely or very knowledgeable about investing and investments and only 43% of respondents feel extremely or very confident about making decisions about savings and investments on their own without an advisor. Â
Methodology
The questionnaire for this study was designed by
Information for this study was gathered through 15-minute online interviews conducted between
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