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February 10, 2012 |
55-70 Age Group A Prime Retirement Market, Study Says |
Financial advisors have a prime opportunity in the trillions of dollars
in investable assets and retirement accounts held by 55- to
70-year-olds, according to a new study by Cerulli.
The study notes that those in that age bracket are focusing on retirement and have $11.5 trillion in investable assets available, of which 41% is in retirement accounts.
The study, The State of the Rollover and Retirement Income Markets: Sizing, Segmentation and Addressability 2011, says this is a prime target for financial advisors looking for new clients.
Prior to age 55, the focus is not as strong on retirement and after 70 the retiree is pretty much set in his retirement plan, the report notes.
"However, the ages between 55 and 70 appear particularly ripe for the advice, guidance and products that support retirement income strategies," said Tom Modestino, head of Cerulli's retirement practice. Cerulli Associates is a research and analysis organization that provides financial institutions with guidance in strategic positioning and new business development.
The amount of investable assets in this age group will grow to $13.7 trillion by 2015. Of the $11.5 trillion currently available, 46% is held by the 55 to 59 age group. One third of this money is in direct-held mutual funds, stocks and bonds.
"We recognize that knowing the size and location of investor assets does not necessarily translate into money in motion toward retirement income solutions, but it s a strong gauge. Firms can use this analysis to identify their opportunity and develop relevant strategies," said Allesandra Hobler, Cerulli's retirement practice analyst.
—Karen DeMasters
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55-70 Age Group A Prime Retirement Market, Study Says |
