JERSEY CITY, N.J., — Pershing LLC, a BNY Mellon company, announced the availability of a new report, The Secret Knock: Unlocking the Retirement Opportunity. This independent study explores the retirement planning needs of affluent investors and small business owners and offers specific, actionable insights for financial services firms on how to accelerate their retirement business in the post-crisis environment. The findings provide guidance on critical issues such as risk management, the importance of developing a trust-based relationship and building retirement solutions specifically for the needs of affluent investors and small business owners.
Developed in conjunction with Mercatus LLC, a strategic consulting and investment firm, the study illustrates that financial services firms and professionals who position themselves as the primary Retirement Solutions Providers for their clients are more successful in capturing new retirement business and money in motion. The research is based on a survey of 2,086 consumers, 401 small business owners and 822 financial professionals.
Key findings include:
- There is a $303 billion retirement money-in-motion opportunity—the movement of retirement funds each year in the form of IRA rollovers, IRA transfers and transfers of taxable money earmarked for retirement is significant.
- Becoming the Retirement Solutions Provider drives significant asset gains—The Retirement Solutions Provider relationship is central to capturing retirement money-in-motion among the affluent, as share of wallet increases from 50% to 76% when a financial professional has established the Retirement Solutions Provider relationship.
- Significant crossover opportunities exist with small business owners—Small business owners present a unique opportunity for financial professionals who have made retirement a core part of their business. According to the study, 61% of small business owners have the same financial professional advising them on their personal finances and business retirement plan assets; among those working with different professionals, 38% would consolidate with one professional.
- Investors remain cautious of risk—The decline in assets during the financial crisis left many skeptical of the financial services industry and investors have shifted their focus from accumulation and generating alpha to managing risk and building downside protection into their retirement plans. For example, financial professionals who provided downside scenarios to their clients experienced a 19% increase in net assets relative to their peers.
“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, director at Pershing LLC. “By providing our customers with a broad set of retirement solutions, Pershing is well positioned to help financial firms develop successful strategies to unlock this significant opportunity to grow their businesses and better serve their clients.”
Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,150 institutional and retail financial organizations and independent registered investment advisors who collectively represent approximately five million active investors. Located in 21 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Börse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at www.pershing.com.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $24.4 trillion in assets under custody and administration and $1.14 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available at www.bnymellon.com.