Nearly half of defined contribution plan participants holding assets in a former employer's retirement plan say they are highly likely to open a rollover IRA within the next 12 months, according to new research that shows the demographic profile of these potential clients is shifting toward younger, more diverse investors who are less loyal to incumbent providers.
The 2026 DC Participant Planscape report, released October 14 by Cogent Syndicated, a division of Escalent, surveyed 4,006 U.S. DC plan participants between July 7 and July 28. It found that 46% of those with former employer-sponsored retirement assets—averaging $90,000 per participant—are strongly inclined to initiate a rollover in the coming year.
Younger cohorts reshape the candidate pool
Gen Z representation among likely rollover candidates nearly doubled year over year, rising to 22% in 2026 from 12% in 2025. Millennials also increased their share, climbing to 44% from 37% over the same period. The candidate pool also grew more diverse: Black and African-American participants now account for 25% of likely candidates, up from 15%, while Hispanic and Latino participants rose to 21% from 17%.
This shift has implications for advisors and plan providers, as these younger investors are more receptive to guidance at life moments beyond job changes. Marriage, divorce, the birth of a child, and career milestones all emerge as key touchpoints when Gen Z and millennials are open to rollover education, according to the report.
“Beyond job changes and open enrollment, Gen Z and Millennial participants are markedly more receptive to rollover IRA education when experiencing major life events like marriage, divorce or birth of a child or upon hitting key professional milestones,” said Sonia Davis, lead report author and senior product director at Escalent's Cogent Syndicated division.
However, Davis cautioned that these younger participants also report higher friction: they are more likely to feel overwhelmed by paperwork, confused by the rollover process, and worried about making costly mistakes—barriers that could derail intent before it becomes action.
Competition intensifies for rollover assets
The competitive stakes are rising. More than one in five participants (22%) now plan to roll assets to a brand-new firm with which they have no prior relationship, up sharply from 14% in 2024 and 19% in 2025. Among Gen Z participants, that figure climbs to 33%, and among millennials to 30%.
That finding echoes broader trends in asset movement. Surveys of younger investors have repeatedly shown a willingness to switch providers, and planning-focused advice is becoming a key differentiator. Firms that built relationships during a participant's accumulation years cannot assume those relationships will survive the rollover moment.
“As these generations become increasingly interested in rolling their assets, they have also become harder to keep in-house,” said Linda York, a senior vice president at Escalent's Cogent Syndicated division. “To retain clients and capture rollover dollars, firms must proactively engage participants as their financial lives evolve and make rollover decisions easier to understand and act on—or risk losing the relationship they built to a competitor.”
For advisors, the data suggests that a proactive, life-event-driven outreach strategy could be more effective than waiting for a job change. The report also highlights the need for simplified processes and clear communication to overcome the friction points that younger participants cite. As the rollover market grows more competitive, providers that adapt to these preferences may be better positioned to capture a share of the estimated billions in assets in motion.
