Media Contacts
Catherine Theroux
Director, Public Relations
Work Phone: (860) 285-7787
Mobile Phone: (703) 447-3257
Brooke Lacey
Senior Public Relations Specialist
Work Phone: (860) 298-3920
Mobile Phone: (413) 530-6184
A little can go a long way - realizing the value of retirement plan portability
1/25/2017
About 10 million people will change employers this year and face a choice regarding the money in their defined contribution (DC) plan. Recent research shows that more than half of job changers with less than $5,000 in their DC plans will cash out their balances. And while this may seem like a small amount of money, many consumers are losing out on long-term growth investment.
The beginning of the year is a great time to remind your clients of their options, like roll-ins or plan-to-plan transfers, in case they become part of the approximate 3.4 million people who will change jobs this year with less than $5,000 in their DC plan when they leave. Nine out of ten Millennials and Gen Xers prefer their employer plan as their primary retirement account. Ninety-eight percent of employer plans allow roll-ins, but only 6.6 percent of assets rolled-in during 2014 were plan-to-plan rollovers.
For more information on this topic, LIMRA members can read more about a discussion on Automatic Portability in DC plans, and advances on the regulatory and policy fronts.