Many Employees Choose to Leave Money in Their Plan After Retirement
July 13, 2022
Research shows many workers are interested in keeping retirement savings in their employer-sponsored retirement plan (ESRP) after retirement, and more organizations are accommodating them. While the more common choice is to roll assets into an IRA after changing jobs or retiring, there are many benefits of staying the course, including potentially lower fees, access to retirement savings penalty-free and more stable value investment options.
Identify the Savings Opportunities
A 2021 Pew Charitable Trusts survey of recent retirees and older workers (nearing retirement) indicated at least 54% of older workers plan to keep their retirement savings in their current ESRP, rather than roll over the account into an IRA. The employees cited convenience and investment options available through the employer-sponsored 401(k) plan as the top factors for leaving their assets in the plan.