Americans are possibly missing $1.65 trillion in lost 401(k) accounts, according to new research by Capitalize. These are mostly forgotten 401(k)s left behind by job changers. If you left behind a 401(k) at a previous job, you should find it and consider cleaning it up and getting it moving. The Daily Mail’s Tilly Armstrong reports:
Americans are missing out on $1.65 trillion which is lying in forgotten and lost retirement accounts, experts have warned.
As of May this year, there are 29.2 million 401(K) accounts which have been left behind when workers changed jobs, according to a study by financial company Capitalize.
This is up from 24.3 million forgotten accounts holding approximately $1.35 trillion in May 2021 – a rise of over 20 percent driven by a period of increased job switching in recent years.
Some 3.8 million and 4.4 million accounts were left behind in 2021 and 2022 respectively, according to the study, putting savers at risk of missing out on several hundreds of thousands of dollars in retirement. The average balance in a forgotten 401(K) has increased to $56,616, according to Capitalize.
Action Line: Don’t leave a penny behind. You worked hard for your money and it needs to be taken care of. When you need help, I’m here.
