Sedona Arizona

Ep 19: Retirement Leakage

Show Description

You have four options available for your 401(k) plan when changing jobs… yet almost half of job changers cash out.

A Harvard Business Review study found that approx. 41% of employees took a cash distribution when changing jobs… and 85% of those people cashed out the entire balance!

This is called retirement leakage, and cashing out can be detrimental to your long-term financial and retirement health.

In this episode I discuss the four options available, why people cash out their 401(k)s when changing jobs, and what employers and financial advisors can do to help.

Resources cited in this episode:

Harvard Business Review: Too Many Employees Cash Out Their 401(k)s When Leaving a Job

Medium: Is Financial Stress Affecting Your Workplace?

Own a business and want to learn more about setting up a workplace financial literacy program? Send an email to info@lifemoveswealth.com.

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