Mon, Dec 5, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli: Households with $100k-$500k in investable assets are sweet spot for asset managers

Wednesday, October 10, 2012
Opalesque Industry Update - According to The Cerulli Edge-Retirement Edition, 3Q Issue, most households with between $100,000 and $500,000 in household investable assets for retirement have not developed a formal retirement income plan or engaged with a financial advisor.

"This finding is a significant concern because that means some investors are entering retirement without an income plan for the next 20 plus years of their lives. In addition, we found that many retirees in the $100,000 to $500,000 asset range are not working with a financial advisor," explains Tom Modestino, associate director at Cerulli Associates.

"The silver lining is that this represents a great opportunity for asset managers, broker/dealers, and retirement plan providers to increase retirement income planning education, guidance many investors will welcome. This lack of planning can result in rollover opportunities after retirement," notes Alessandra Hobler, analyst at Cerulli.

Interestingly, Cerulli points out that the few investors who are working with a financial advisor were not likely to move or switch their assets to another advisor.

Of those households with less than $500,000 in investable assets, concerns are more strongly centered on cash flow. Asset managers may develop relationships with these households by offering budgeting tools and educational information on Social Security.p> Cerulli also found that investors with between $500,000 and $2 million in investable assets were more prepared for retirement and many were working with an advisor. And, investors who fell within this income range were found to be more likely to switch assets to another advisor. This is likely due to the fact that once these investors enter retirement, they look for an advisor with strong, established retirement income planning services.

"Preparing for retirement can be a difficult task. Investors spend most of their lives saving and accumulating assets in order to generate future retirement income," Hobler points out.

Other findings:

Although pre-retirees should be a primary target for advisors hoping to provide retirement income planning, more than half of retired investors do nothing in advance of retirement.

While investors in their fifties are likely to report that they have not gotten around to consulting an advisor, investors in their sixties are likely to say they do not need retirement advice. Therefore, the sweet spot for asset managers to target with the message of retirement income is investors in their late fifties.

Though relationships between providers and investors are formed through the retirement asset accumulation stage, for firms that have not had the opportunity to work with investors at this stage there is still the potential to garner rollover assets at the time of retirement.

(press release)

These findings and more are from The Cerulli Edge: Retirement Edition, 3Q 2012 issue: external.cerulli.com/file.sv?00026M

Click here to request a press copy of this research.

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Europe - UK investors to pay more tax on money in offshore funds, Do you want to hand your money to super-algo or a Swiss banker?[more]

    UK investors to pay more tax on money in offshore funds From FT.com: Hedge funds in Dublin and Luxembourg are set to be hit by new rules that will force UK investors to pay more tax on the money they hold in offshore funds. As part of the government’s Autumn Statement on the country’s fi

  3. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  4. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  5. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan