According to Cerulli’s report titled “The State of The Rollover
and Retirement Income Markets: Sizing, Segmentation, and Addressability 2011,”
IRAs are becoming the destination for defined contribution (DC) assets.
The total of all IRA types (traditional and nontraditional) reached
$4.7 trillion in 2010, representing a 10% growth from the prior year. Cerulli
said the overwhelming contributor over the past five years to the increase in
traditional IRAs is $1.5 trillion of inflows from rollover assets.
Cerulli noted that outflows in the form of distributions from IRAs
are slightly under half the rollover total at $730 billion. With the oldest
Baby Boomers turning 65 in 2010, this demographic is five years from making
required minimum distributions from their traditional IRA accounts.
Cerulli projects that rollovers will grow steadily from an
estimated $349 billion in 2011 to nearly $600 billion in 2016. Rollovers are
the single largest non-cash opportunity for asset managers, Cerulli said.
The report is available for
purchase by contacting CAmarketing@cerulli.com.