How are millions of 401(k)s being left behind, and what is the cost to workers?

What’s the issue with millions of 401(k)s being left behind?

Millions of workers are leaving behind their 401(k) retirement accounts when they change jobs, resulting in significant financial losses. This trend is particularly troubling as 401(k)s are a key source of retirement savings for many Americans.

How are workers losing money by leaving behind their 401(k)s?

When workers leave a job and leave their 401(k) account behind, they often neglect to monitor or manage it. As a result, these accounts may be subject to high fees, poor investment choices, and missed opportunities for growth. Over time, this can lead to substantial losses in retirement savings.

What are the consequences of leaving behind a 401(k)?

Some of the consequences of leaving behind a 401(k) include:

– Potential for high fees eating into retirement savings
– Missed opportunities for investment growth
– Difficulty in keeping track of multiple accounts
– Inability to consolidate retirement savings for better management

What can workers do to avoid leaving behind their 401(k)s?

To avoid leaving behind their 401(k) accounts, workers can take the following steps:

– Roll over their 401(k) into an Individual Retirement Account (IRA) when changing jobs
– Consolidate multiple 401(k) accounts into a single account for easier management
– Stay informed about their retirement savings and investment options
– Seek guidance from a financial advisor on how to best manage their retirement accounts

In conclusion

It’s crucial for workers to be proactive in managing their 401(k) accounts to avoid losing money and missing out on potential growth. By taking steps to stay informed and consolidate accounts, workers can ensure that their retirement savings are secure and optimized for the future.