From NBCUniversal:

1. $92.4 billion leaks from US retirement accounts annually as workers cash out their 401(k) plans. Some concerned groups, such as EBRI, are working on alternative measures to protect the nation’s retirement future.

2. 85% of workers cash out, draining their 401(k) accounts, due to job changes. The US’s secure retirement plan system aims to keep more funds within the system to provide financial security for the retiring population.

3. Employers have the legal right to cash out the small balance 401(k) accounts of former employees who leave their accounts behind, leading to neglect and forgotten accounts. Secure 2.0 and recent collaborations amongst major 401(k) administrators seek to minimize these leakages.

4. Large 401(k) plan administrators have initiated the “auto-portability” initiative to connect $7,000 or less directly with their new jobs. This helps young workers, low-earners, and minorities to accumulate, retain, and grow these small 401(k) account balances.

5. The U.S. Labor Department is establishing a “lost and found” online registry for forgotten retirement accounts to help workers trace and access old benefits. A recent investment aims to build the database for future use, while a few options are available for immediate claim of forgotten accounts.



Read more: Policy changes look to reduce 401(k) plan ‘leakage’