Participants in defined contribution plans, when acting without the benefit of better guidance, often make decisions that mean their account balances suffer from loans and “leakage”—but advisors can help to keep such losses down.
That’s according to research from the December 2015 edition of The Cerulli Edge, which found that when participants were better educated regarding the high cost of loans and early withdrawals, they were far less likely to simply withdraw the funds from a retirement account when changing jobs.
Bureau of Labor Statistics data indicate that the average worker will change jobs 9–12 times during his lifetime.
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