Lessons on getting your head out your butt🤑. Okay, that’s a bit harsh, but …
I have no doubt the data shown below are accurate, but isn’t what it tells us scary? Simply put, many workers pay little attention to their benefits and retirement savings.
Contrary to Warren’s statement, nothing is lost and there are no roadblocks … unless you consider the inattention and irresponsible actions by workers a roadblock.
… It uses data employers are already required to report to the Treasury Department to create a national, online, lost and found for Americans’ retirement accounts. “This means that with the click of a button, any worker can locate all of their former employer-sponsored retirement accounts. No more lost account—ever.”
“With the click of a button” and so easy. Now all we need is for workers to know of the online data base … and … to use it. Hey, did you know you can calculate your Social Security benefit?
Can you imagine leaving a job with $5,000 in your account? Can you imagine leaving a job with vested employer contributions and not knowing it? Oh yeah.
Given the clear rules around 401k plans and forced distributions, this should not be all that complicated, but it is… because people don’t pay attention, don’t read the material provided to them … even when it’s 100% in their best interest to do so.
Millions of Americans lose thousands in savings each year because of lost retirement plans from previous employers and other roadblocks to tracking multiple accounts,” Warren said in a statement. “Our bipartisan Retirement Savings Lost and Found Act of 2020 is a common-sense step we can take now to help hard-working Americans build a little more security and retire with the dignity they deserve.”
TIAA estimates that 30% of employees left a retirement account at their previous employer, including 43% of Gen Xers and 35% of Gen Yers. And according to the Government Accountability Office, millions more have left two or more accounts behind.
Between 2004 and 2013, there was a total of $8.5 billion sitting in lost retirement plans with just $5,000 or less in them. This problem is only expected to grow in the coming years, the politicos add, as young workers switch jobs at much higher rates than their older counterparts—the median job tenure for workers between ages 25 and 34 is less than 3 years.