Workers changing or leaving jobs don’t always take their401(k)s with them—or else they cashout and take the money, thus reducing their retirement savings. Butnew tools could help to change that.

|

In a new partnership with FeeX, NerdWallet has launched twotools designed to help workers “manage and maximize theirretirement 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 formeremployer say it’s because they don’t know how, they don’t havetime, or it’s not a priority. According to ING Direct, the numberis more like 30 percent. And the problem of “leakage” is huge:according to the Government Accountability Office, workers cash out 2.7 percent of thetrillions in 401(k) plans each year—resulting in billions of lostsavings.

|

The NerdWallet/FeeX collaboration has not only produced twotools but also a website, a 401(k) Rollover Center, at which users canexplore plans for hidden costs and fees, estimate how much arollover might save them and look for alternate providers.

|

Users provide some information online, such as their formeremployer’s name, the investment firm that holds the account and thetype of investment funds in the account—and FeeX analyzes the feesfor the account, then and delivers a cost comparison of theexisting account and other investment alternatives.

|

Users can then see how much they’re currently paying in annualfees, as well as how much they might be able to save by rollingover their accounts, depending on their retirement age. They canalso then roll their 401(k) to an investment alternative of theirchoice. The service is free to all users and does not requiresensitive personal identifiers.

|

Through the retirement calculator, Americans can get an idea ofhow they stand regarding their retirement goals by, again,answering questions about their age, when they expect to retire,current income, retirement savings and contributions. An activeinterface provides an estimate of how much they’ll need to save toretire comfortably at different ages, and also provides access toNerdWallet’s Ask an Advisor platform. The tool and access toexperts are free.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.