NEEDHAM, Mass., Oct. 24 /PRNewswire/ -- Financial institutions are on the cusp of a multi-trillion-dollar opportunity to gain assets by providing efficient and effective retirement income planning services for the growing percentage of the population in or near retirement. New research from TowerGroup predicts that the challenges inherent in retirement income planning and asset decumulation will soon prompt many US households to consolidate assets with a single advisor. The opportunity for financial services institutions to gain or lose assets is significant.

Retirement assets in various plan types under the control of individual investors in the United States total US$9 trillion, with business liquidation over the next decade potentially resulting in another US$10 trillion in assets. Yet the retiree market is far from monolithic as regards to income planning. TowerGroup's research underscores the importance of defining both the unique requirements and opportunities of each of the three major segments:

* The mass market, the largest by far in terms of number of households, will focus on asset protection and shifting assets into vehicles that generate income with manageable risk to principal. * The affluent market, households with investable assets of US$200,000 to US$2.5 million, will be interested in structured asset drawdown strategies balanced with a personal risk management program. * The high-net-worth segment will look for programs that blend and balance lifestyle and legacy.

A chart illustrating the key differentiators between the three major segments can be viewed and downloaded at: http://www.towergroup.com/research/content/page.jsp?pageId=802

TowerGroup asserts that competitive advantage will flow to financial services institutions that can manage clients' finances and expectations as they move from mass market to affluent to the high-net-worth financial segment during their working years -- and then back down to mass market as the retirement years progress and their nest eggs get depleted. In the battle for consolidation of household assets, the winning formula will be independent and objective advice offered by distributors such as smaller registered investment advisors (RIAs), as well as banks and brokerage firms that provide advice unencumbered by proprietary product sets.

A new report titled "Winning the Battle for Retirement Assets: Wealth Management or Product Pitch Polemics?" by Matt Schott, research director in the Brokerage & Wealth Management practice at TowerGroup, defines the opportunities and requirements for the mass market, affluent and high-net-worth retirement segments, and evaluates the service and strengths of various product manufacturers and distributors in meeting those requirements.

Earlier this year, Mr. Schott authored two related research reports on the topic of retirement income security:

* "Retirement Income Security: Denial and Deflection in the Age of Individual Responsibility" * "Retirement Income Security: Will Institutions Deliver Peace of Mind or Purloined Promises?"

These reports are available to qualified members of the press for review. To request a copy or to arrange an interview with Mr. Schott, please contact Jorge Lavina at 1.212.455.8041 or jlavina@cooperkatz.com.

At TowerGroup, Mr. Schott's research targets technology trends and market developments for institutions serving investor households, with focus areas including: wealth management; managed money; advice generation and financial planning; customer relationship management; and client reporting.

Sign up for bi-weekly newsletter, TowerGroup News, to stay informed on the latest research and events. To learn more, visit: http://ui.constantcontact.com/d.jsp?m=1101074606706&p=oi

About TowerGroup: TowerGroup is the leading advisory research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world's leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America, Europe, and the Asia-Pacific region, TowerGroup serves a global client base. Visit http://www.towergroup.com/ for more information.

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Contact: Jorge Lavina p. 1-212-455-8041 jlavina@cooperkatz.com

TowerGroup
CONTACT: Jorge Lavina for TowerGroup, 1-212-455-8041,
jlavina@cooperkatz.com

Web site: http://www.towergroup.com/

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