Plan Leakage and the Impact of Withdrawing Savings Before Retirement
- February 24, 2020
- Posted by: Jeff Atwell
- Category: Financial Plan, Resources
The attached study by the Savings Preservation Working Group provides great insight into the retirement plan leakage problem. The private retirement system is key to the majority of working Americans retiring with dignity.
As illustrated in the white paper linked below, leakage is a big reason individuals who have participated in a retirement plan for years have not accumulated more in retirement assets. This provides a tremendous opportunity for retirement plan professionals to work with plan sponsors to implement procedures or plan features which will help preserve a participant’s retirement account.
Leakage has been a big issue for many years, however, as stated in the study, there may be legal, policy or operational improvements that could reduce cash-outs and preserve more retirement savings.
By Jeff Atwell, AIF, C(k)P, CPFA , Principal, TRG Fiduciary Services, LLC
If you want to learn more about retirement plan leakage, check out our blog posts on retirement plan leakage and how you can work to prevent it.