Only 45% of affluent investors are satisfied with their employer-sponsored retirement plan provider, according to a report from Cogent Research. Forty-three percent say they are somewhat satisfied, and 12% are dissatisfied.
Satisfaction levels fall to 40% among Generation X, and 48% of Baby Boomers are satisfied.
However, four firms receive high marks, with 63% of investors satisfied with TIAA-CREF, 59% satisfied with Vanguard, 55% satisfied with Fidelity and 54% satisfied with T. Rowe Price.
“Keeping plan participants happy can have a multiplier effect,” said David Feltman, managing director of Cogent Research. “Satisfied participants are three times more likely to roll dollars into an IRA with their current 401(k) or 403(b) provider than are those that are not happy.”
Cogent Research found that 25% of affluent Americans have assets sitting in former employers’ retirement plans, and 42% said they are likely to roll over the assets to an IRA within the next year. Cogent estimates these assets total $350 billion.
When asked which firms they would likely roll their assets to, 20% cite Fidelity, 7% point to Vanguard, 5% say Charles Schwab and 3% cite Merrill Lynch.
"Fidelity hits it out of the park--deep penetration in the 401(k) market, highly satisfied participants and a strong retail brand--all of which predispose large numbers of affluent investors to roll their assets to the firm," Feltman said.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access