Workers changing or leaving jobs don’t always take their 401(k)s with them—or else they cash out and take the money, thus reducing their retirement savings. But new tools could help to change that.
In a new partnership with FeeX, NerdWallet has launched two tools designed to help workers “manage and maximize their retirement savings”: the NerdWallet Retirement Calculator and a 401(k) fee analyzer.
About 20 percent of people who change jobs and leave their 401(k)s with a former employer say it’s because they don’t know how, they don’t have time, or it’s not a priority. According to ING Direct, the number is more like 30 percent. And the problem of “leakage” is huge: according to the Government Accountability Office, workers cash out 2.7 percent of the trillions in 401(k) plans each year—resulting in billions of lost savings.
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