Baby boomers are retiring in large enough numbers that withdrawals from 401(k) plans will outpace contributions in 2016, according to a new retirement news forecast by Cerulli Associates.
That shift in assets will create a large business opportunity for asset managers and other financial firms, Cerulli director Bing Waldert said in a release.
Withdrawals will take many forms, including cashing out, rollovers into IRAs and conversion into annuities and other income generation formats.
Personal budget and company match are the two biggest factors in determining a plan member's contribution rate, the Cerulli study said.
Lack of savings, high level of debt and a desire to keep working are the biggest factors in people's decisions to delay retirement, the study noted.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.