Nearly 30 percent of recent retirees and job changers who rolled their retirement plan balances into a new IRA, stayed with their original provider, according to a recent study. Those original providers, in most cases, were mutual fund companies, according to the study by Brightwork Partners of Old Greenwhich, Conn. and Greenfield Online, of Wilton, Conn.
Mutual fund companies have the best performance in retaining rollover accounts, the study found. They retain, on average, 40 percent of job changers and 35 percent of retirees, according to the study. Insurance companies retain only 13 percent of job changers and 28 percent of retirees. Securities firms and banks have retention rates of between 25 and 30 percent, according to the study.