Study Reveals Many Americans Have Lost Track of Retirement Savings from Previous Jobs
A new study by Empower finds that one in three Americans (34%) have lost track of retirement savings from a previous employer, with higher rates among younger generations like Gen Z and Millennials. The phenomenon is termed 'retirement drift,' where changing jobs multiple times leads to fragmented retirement accounts across different employers, making it harder for individuals to manage their overall financial picture. The survey highlights that 54% of Americans have changed employers three or more times in their careers, with many finding it difficult to plan for retirement due to the complexity. Over half (66%) wish they had clearer guidance when changing jobs and would prefer step-by-step support from a professional rather than relying solely on AI tools. The study also shows that 81% of Americans want consistent retirement advice throughout their careers, emphasizing the need for ongoing financial planning as career paths become more non-linear. Empower administers over $2.1 trillion in assets and aims to provide clearer guidance through its services.
Topics: 401(k) accounts employee turnover financial complexity retirement drift