The number of "forgotten" 401(k) plans—retirement accounts that are left behind when workers change jobs—is growing, and currently represents approximately $1.65 trillion in assets, according to a new analysis by Capitalize, a technology company that offers an online platform to help transfer 401(k) accounts.
The True Cost of Forgotten 401(k) Accounts report outlined a 20% increase in forgotten or left-behind assets in retirement plans over the past two years. The company estimated there are nearly 30 million forgotten or left-behind 401(k) accounts, and officials say that such accounts could cost an individual several hundred thousand dollars in foregone retirement savings over time.
The company noted that a surge in such forgotten accounts may be happening due to the Great Resignation, with millions of Americans switching jobs.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
