Retirees will be rolling over $303 billion a year over the next few years, according to Pershing, and with this tremendous opportunity at hand, the company has issued a report for financial advisers called, “The Secret Knock: Unlocking the Retirement Opportunity.”
The report is based on a survey of 2,086 consumers, 401 small business owners and 822 financial professionals and was developed in conjunction with strategic consulting and investment firm Mercatus.
One of the keys, according to the report, is to become the primary retirement solutions provider. When doing so, share of wallet increases from 50% to 76%, according to the findings.
In addition, there are significant crossover opportunities when working with small business owners, who besides professional management are looking for help with their retirement planning.
Investors remain cautious of risk. Thus, advisers need to focus on managing risk and building downside protection into retirement plans. Financial professionals who provided downside scenarios to their clients experienced a 19% increase in net assets relative to their peers, according to the report.
“With total U.S. retirement assets exceeding $16 trillion, according to ICI data at year-end 2009, rebuilding trust and establishing a retirement solutions provider relationship represents a tremendous opportunity for financial professionals,” said Robert Cirrotti, a Pershing director.