Rollovers Hit $1 Trillion as Workers Move to Employer Plans
U.S households moved an estimated $1 trillion in retirement plan rollovers in 2025, reports the latest findings out today from Hearts & Wallets.
The new market intelligence report by the data and benchmarking firms finds that one in eight rollover transactions, or 16%, are over $100,000. Rollovers in new employer plans have doubled in dollars terms, at $160 billion today compared to $80 billion in 2022.
While households still prefer to rollover their retirement savings to individual retirement accounts (IRAs), more are choosing to add rollovers to new employee plans instead, especially for workers ages 53 to 64 excited to enroll in plans with new features like in-plan retirement income tools.
“Good service in the money movement experience, whether on the receiving or sending side of the transaction, increases the chances of being on the winning end in the future,” Laura Varas, CEO and founder of Hearts & Wallets, said in a statement. “Firms that understand overall money movement data may find they need to change the way they do business to capitalize on opportunities.”
According to the findings, financial stores with the highest net flows include Charles Schwab, Edward Jones, Vanguard, Raymond James, and LPL.
Growth opportunities
Rollover transactions consume a lot of time for the average participant, with the average rollover generally taking between four to six weeks to complete.
Participants may also take a longer time to decide on what to do with the funds. According to Hearts & Wallets, two-thirds of participants chose to rollover their accounts more than six months after leaving their former role.
When asked what their top motivation was to implement a rollover, four in 10 participants said it was to “simplify my finances.” “Consolidate for better planning” and “better service” were also leading motivations, whereas reasons like “advisor influence” staggered behind.
In dollar terms, “consolidate for better planning” was the top motivating factor at an estimated $450 billion of the $1 trillion moved, Hearts & Wallets reports. In the future, the report predicts that “simplify” and “better planning” will remain as important reasons, followed possibly by “lower fees” and advice motivations.
“Flows can be increased by emphasizing the right factors at the right times for specific target audiences,” said Amber Katris, a Hearts & Wallets subject matter expert. “Keep building the features that make the new employer plan an attractive destination. Also encourage trial by empowering new customers to try a service model with a smaller balance for a limited time.”
The report, “Money Movement 2025: Sizing & Seizing the Biggest Opportunities in Competitive Rollover, Transfers and Trial” was fielded from July 17 to August 9, with data from 5,981 households.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.