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.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- 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.
