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.
