Do you have custody of your nest egg? A 2013 survey by ING Direct USA showed that half of American adults who participated in an employer-sponsored retirement plan, such as a 401(k), have left an account at a previous employer. These “orphaned” retirement accounts represented more than $1 trillion in investment dollars in 2010.
Leaving an employer is complicated enough, so managing a 401(k) account is likely the last thing on many people’s minds as they make an exit. Consider this: It’s common to move from one employer to the next every two or three years, particularly for people who are newer to the workforce. Someone in their mid-30s could have worked for four or five employers and left behind a 401(k) account each time they moved.