As baby boomers near retirement, firms will have to ask themselves how dedicated they are to capturing retirement rollover assets in individual retirement accounts (IRAs). According to a new report by Financial Research Corp. (FRC) of Boston, one of the key ways a defined contribution provider can capture those assets is to have a dedicated rollover-services call center separate from a traditional 401(k) call center.
The industry is anticipating that a tremendous amount of rollover assets will soon be up for grabs. The Spectrem Group, a consulting firm in Chicago, estimates that more than $3.7 trillion will flow out of qualified retirement plans by 2005, $474 billion of which will occur in 2002. Of the $3.7 trillion, Spectrem believes more than 50% will move into IRAs.