When it comes to retirement savings, Americans are hella serious. However, they are not as serious when tracking or monitoring their retirement accounts. Even a small amount that grows over time has a substantial value for retirement. Most Americans change employers one to three times. Some put off managing old 401k accounts due to the elaborate process, administrative rollovers, job hopping, safe harbor IRAs, low balances, and life circumstances.
As a result, an Empower survey found that 34% of Americans have forgotten their retirement accounts. Meanwhile, 70 million Americans have invested about $10 trillion in retirement accounts. This includes Gen Z and millennials. Despite this, a busy modern lifestyle has caused Americans to deprioritize monitoring their retirement savings.
What Americans can do about this: reclaim the savings immediately to avoid hidden fees that overshadow monetary growth. 54% of Americans do not consider retirement savings management as a part of their to-do list.
Contact former employers, hunt down your tax documents, roll over your 401(k) to an IRA, and let your savings stay with your former employer.
Rolling over can be an elaborate process, but it’s worth it. If you withdraw it before age 59 and a half, you are subject to a 10% penalty fee.
The U.S. Department of Labor also provides a Retirement Savings Lost and Found Database where you can search for linked pensions, 401(k)s, and contribution plans. Smaller balances, less than 7000 dollars, are eligible for the Portability Services network. If both administrators participate, the balance can be transferred to your new employer’s account.
