Participants in defined contribution plans, when acting withoutthe benefit of better guidance, often make decisions that meantheir account balances suffer from loans and “leakage”—butadvisors can help to keep such lossesdown.
That’s according to research from the December 2015 edition ofThe Cerulli Edge, which found that when participants were bettereducated regarding the high cost of loans and early withdrawals,they were far less likely to simply withdraw the funds from aretirement account when changingjobs.
Bureau of Labor Statistics data indicate that the average workerwill change jobs 9–12 times during his lifetime.
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