A study from the U.S. Government Accountability Office (GAO) found that more than 25 million Americans left their 401(k) balance in a former employer’s plan during the 10-year period from 2004 through 2013.1 While there may be nothing wrong with leaving your 401(k) balance at a former employer, it could create planning challenges.
If your old employer is ever sold or goes out of business, you could have difficulty accessing your funds. Even if the company changes 401(k) providers, you may find it difficult to navigate the new system or get support.
The good news is you have options available. Below are three possible approaches. Consider your unique needs and goals before taking action. Also, you may want to consult with a financial professional to help you determine which option is best for you.
According to a recent report from the Insured Retirement Institute, many baby boomers are behind on their retirement savings. The study found that 40 percent of baby boomers have no retirement savings. Nearly 70 percent have no pension or defined benefit plan. And almost 60 percent have less than $250,000 in retirement savings.1
Retirement is a difficult financial challenge for nearly everyone. You may have other expenses, like debt or education costs, that might seem more pressing. You might think that you have plenty of time to save for retirement. However, as you approach retirement, your window for saving is quickly closing.
If you’re behind on your retirement savings, now is the time to close the gap. The earlier you start, the more options you may have available. Below are three strategies that can help you catch up on your planning and erase your savings gap: