$2.1 trillion sits in 31.9 million forgotten 401(k) accounts — yours could be one of them
Around 45% of workers contribute to some kind of workplace retirement plan, such as a 401(k), according to the Pension Rights Center (1). For many people, finding money to put into a retirement account can be a struggle, but it’s important, because you’ll need this money to live
Around 45% of workers contribute to some kind of workplace retirement plan, such as a 401(k), according to the Pension Rights Center (1). For many people, finding money to put into a retirement account can be a struggle, but it’s important, because you’ll need this money to live on later.
Imagine, though, that you work hard to invest for retirement and then just forget about the money. That happens way more often than you’d think, with Capitalize (2) reporting that around 31.9 million 401(k) accounts have been left behind at former jobs. Those accounts have $2.1 trillion in them, which is a lot of money.
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So, what happens if some of it is yours? Let’s pretend, for example, that Jessica has just discovered she has an old 401(k) with over $10,000 in it. Now, Jessica is wondering if she has any other lost accounts and also what she should do with the money she’s stumbled upon.
Since Jessica already left behind one account, she may very well have made the same mistake when leaving other employers.
According to the Bureau of Labor Statistics (3), Baby Boomers held an average of 12.9 jobs from ages 18 to 58, and the National Institute on Retirement Security (4) reports that younger workers have similar career habits.
