retirement plan 401(k) retirement savings portability

Missing participants are bad

Missing participants sponsors survey

401(k) cashouts are MUCH worse

1.  Missing participants have preserved their retirement savings, while participants cashing out have not. 2.  Far more cashouts occur than participants who go missing.
  • 6 million will eventually cash out.  Incredibly, that's 41% of the total.
  •  2.1 million participants, or 14.5% of job-changers, will remain in their former employer's plan.  11.3% of these, or about 243,000, will have stale addresses and be considered missing.
3.  Most 401(k) cashouts are completely unnecessary.

Portability: A “two-fer” solution?

EBRI Tom Hawkins is Vice President of Sales and Marketing at Retirement Clearinghouse.
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