The nation's employers and regulators could be doing more to help workers avoid missteps that hurt their savings when they move to a new job, according to an ERISA Advisory Council report to the Department of Labor.
Americans may change employers as many as 10 times over their career, according to the report. The preponderance of terminated employees' 401(k) assets — 43 percent according to Aon Hewitt — is redeemed in lump-sum cash payouts when workers change jobs.
That's compared to 31 percent of assets left in plan, and 26 percent that are rolled over to a new defined contribution plan or an IRA.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
