DORMANT 401K: what you should know

Don’t Get Left Behind!

Millions Leave Retirement Savings Behind, Creating a Growing Problem

A recent study reveals a concerning trend: millions of Americans are leaving their 401(k)s behind when they change jobs. This "forgotten 401(k)" problem has grown significantly, with the number of abandoned accounts increasing by over 20% since 2021 (3.8 million in 2021, 4.4 million in 2022). These scattered accounts often languish with high fees, missed growth opportunities due to inactivity, and the burden of individual management.

Missed Market Gains and Unoptimized Investments

While the market has seen impressive growth in recent years (26% in 2023, 10% so far in 2024 for a total 36% gain over two years), many forgotten 401(k)s aren't positioned to benefit. They may be inactive with past employers or invested poorly in current plans.

The Impact: A Staggering Amount of Unutilized Retirement Savings

A Department of Labor study estimates there are a staggering 29.2 million forgotten 401(k) accounts holding a massive $1.65 trillion. This represents a significant portion of potential retirement savings that could be working harder for millions of Americans.

Taking Control: Improve Your Retirement Outlook

By consolidating and actively managing your current and forgotten accounts, you could significantly improve your retirement outlook. Here at Seraphim Capital, our experienced professionals can help you navigate this process and take advantage of the current market gains.