Every financial journey tells a story, and the rollover is often a turning point. For investors, it represents the moment when retirement savings begin to shift into true wealth planning. For advisors, it is the opportunity to bring held-away assets into their care and strengthen the advisor-client bond. Yet many defined contribution (DC) plans are designed primarily for accumulation, not for supporting participants through the distribution phase of their financial lives. That leaves participants searching for guidance at a critical time.
The stakes are enormous. LIMRA projects $855 billion in retail rollover activity this year, rising to $1.15 trillion by 2030. With 60 million workers leaving employers annually, advisors have an unprecedented chance to support investors through this transition. The firms that win will not be those that chase individual rollover transactions. They will be the firms that build recognition, trust, and relevance throughout the participant’s journey.
“Many of our clients look at the growth in the IRA rollover market and wonder how they can capture a greater share of those assets,” says Shawn O’Brien, Head of Retirement Insights at Broadridge Data & Analytics. “I urge those firms to shift their thinking from winning rollover ‘events’ to winning the loyalty and trust of participants. If you establish trust early, the rollover is likely to follow.”
- Shawn O’Brien, Head of Retirement Insights at Broadridge Data & Analytics
Data that drives the right engagement at the right time
Access to participant-level data from retirement plan recordkeepers is transforming how firms understand and connect with investors. Advisors can now view details such as account balances, contribution rates, age, employer match levels, and inferred salary ranges. When combined with external data, this creates a far richer picture of an investor’s financial life.
“Fleshing out participant profiles helps advisors meet participants where they are in their financial lives,” says O’Brien. “Advisors can assess these profiles in the context of their plan’s features and offerings to identify who may benefit most from a more holistic wealth management relationship.”
While many value a high-touch approach, not every participant requires it. Data allows firms to identify who is ready for one-on-one support and who is better served through digital nudges or tailored financial wellness content. Data-driven strategies ensure that every engagement is purposeful and efficient.
Some firms are also expanding their focus to include participants who have recently left an employer but do not yet have the investable assets for a traditional wealth management relationship. With the right engagement strategies and technology, firms can make it simple for these individuals to roll over their assets into an IRA. By offering white-labelled IRA solutions, advisors can keep participants within their ecosystem and lay the groundwork for deeper financial planning conversations as those investors build wealth over time.
Building trust through compliance and security
Trust is the foundation of lasting relationships, and it must be reinforced through both compliance and data protection. Under the Department is Labor’s Prohibited Transaction Exemption (PTE) 2020-02, advisors that serve individual participants in a fiduciary capacity are required to document rollover recommendations in a consistent and transparent way, including evaluating plan fees, available investments, distribution options, and more.
“It’s not just a best practice. It’s a requirement,” says O’Brien. “ERISA fiduciaries must justify their recommendations in a documented, consistent way. That’s where automation and intelligent tools come in. Our Decision Optimizer helps advisors streamline this documentation, deliver required disclosures, and remain compliant while demonstrating integrity to their clients.”
Protecting sensitive participant-level data is equally important. Cybersecurity breaches are on the rise, particularly in smaller 401(k) plans that may lack robust defences.
“Many of the headlines related to data breaches have focused on the largest plans in the country, but the majority of data breaches actually occur in micro and small plans,” says O’Brien. “These are plan asset segments often served by retail-focused financial advisors.”
Advisory firms that access participant data through recordkeeper partnerships need secure transmission and storage in order to preserve client confidence for the long term.
By combining rigorous compliance practices with strong cybersecurity, firms can give clients the assurance that both their wealth and their personal information are protected.
Seeing the lifetime potential in every client
The firms that capture a larger share of rollover assets will be those that take a long-term, relationship-first approach. Winning in this market is not about executing a single transaction. It is about earning the right to guide investors across decades of financial decisions. With IRAs now representing $17 trillion in assets, the opportunity is vast.
“The firms that will succeed are those that can meet participants where they are today and continue to grow with them as their financial lives evolve,” says O’Brien.
Every rollover is more than a transaction. It is part of a deeper, more enduring financial journey. Advisors forging more comprehensive relationships with retirement plan participants will need tools in place to help them execute rollovers in a seamless, compliant manner. Moreover, by leveraging white-labelled IRA solutions, advisors can establish and maintain profitable relationships with end-investors who fall below their traditional wealth management investment minimums.