ARLINGTON, Va. - Mutual fund companies have done a good job of banking assets in 401(k) plans, but with so many people retiring or changing jobs, fund companies often lose those assets at those rollover junctures. With some strategic marketing and some personal advice, however, funds can increase their chances of hanging onto money that rolls out of 401(k) plans, reports Boston-based Cerulli Associates in a recent study, "The Retirement Income Market and Asset Retention Strategies."
Joshua Dietch, a consultant at Cerulli, presented the results of the study at the recent Retirement Income Conference hosted by the National Association for Variable Annuities here. Dietch pointed out that defined contribution (DC) plans and IRAs now represent 70% of the $6.6 trillion in retirement assets. Defined benefit plans make up the remaining 30% of those assets.