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The typical U.S. worker has nine employers over the course of their career, which could translate to nine different retirement plans. The Department of Labor’s Retirement Savings Lost and Found Database, which helps employees find missing retirement accounts, launched in December, but still needs help from plan administrators on participants who left their company to become truly effective.
Millions of workers are losing track of their retirement savings, adding up to $1.7 trillion in forgotten 401(k)s. The SECURE 2.0 provision that required the DOL to create a Lost and Found database to help match participants with old retirement plans that they may have lost track of, which is a step forward, but won’t solve the real issue, according to Mindy Yu, Director of Investing, Betterment at Work. Most employers don’t have a clear plan to help people move and manage their retirement accounts.
We talked with Mindy Yu, Director of Investing, Betterment at Work about why rollovers should be a formal part of employee onboarding and offboarding, and how to integrate them into the HR tech stack, as well as best practices for helping employees find, assess, and consolidate old 401(k)s.
Q. Why should rollovers be a formal part of employee onboarding and offboarding?
Yu: Forgotten 401(k)s are one of the biggest risks to long-term retirement savings. With the average American changing jobs a dozen times in their career, it's important to treat rollovers not as an afterthought but as a built-in process during onboarding and offboarding. Employers can integrate rollover support into HR tech and financial wellness programs, making it as seamless as enrolling in a new plan or updating benefits. This reduces friction and helps employees keep their savings working for them in the long term, not sitting idle or, worse, getting cashed out prematurely.
Q. What are some best practices for helping employees find, assess, and consolidate old 401(k)s?
A: Start by proactively building education into benefits communications—many employees don’t know what steps to take when they leave a job. For some, they may not even realize they have a lingering account from a prior employer. Employers can offer guided tools, digital checklists, or concierge services that walk employees through tracking down old plans. Direct them to resources like the Retirement Savings Lost and Found Database or the National Registry of Unclaimed Retirement Benefits. Help employees weigh whether to consolidate based on fees, investment quality, and alignment with their overall retirement goals. Scattered savings can lose steam over time—consolidation can bring it back into focus.
Q. How can the Department of Labor’s Retirement Savings Lost and Found Database aid employees who have lost 401(k)s?
A: The Lost and Found Database is a much-needed step toward solving the growing problem of forgotten retirement accounts. It allows workers to search for lost 401(k)s tied to their Social Security number, including those from jobs they may have left years ago. While the database is still ramping up and doesn’t yet include all providers, it’s a useful starting point, especially for people who change jobs frequently and lose track of plan paperwork. It's one more tool that can help employees reconnect with their money and regain control of their retirement trajectory.
Related: The cost of switching jobs: A $300,000 loss in retirement savings
Q. What else can employers can do to help employees find their lost 401(k) accounts?
A: Employers can take a more proactive role by implementing rollover assistance into their benefits offering and providing access to education or digital tools that simplify the process. Partnering with platforms that support account consolidation, auto-portability, or financial coaching can also reduce the chance that savings go missing in the first place. Simple actions like reminding offboarding employees about their options or flagging 401(k) plan balances during exit interviews can make a big difference. When employees leave a job, they’re often juggling many priorities. Making retirement account management one less thing to worry about is a smart way to support employees’ financial wellness.
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