Retirement Plan Leakage

For many years, retirement plan leakage has been an issue resulting in a reduction of assets available for individuals when they reach retirement age.

There have been several studies by the GAO over the years outlining the issue.  The attached article summarizes a recent survey of 5,000 retirement plan participants and sheds light on leakage patterns, as well as on the thought process of job changers who are confronted with the challenge of “rolling in” retirement savings from a former employer.

Leakage issues create an opportunity for technology developments and consulting opportunities with Plan Sponsors on how to preserve retirement plan assets as participants change employers or leave employment with an outstanding loan.