More than half of millenials forgetting about their 401Ks

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Consumer expert Chelsey Hernandez explains how millenials are leaving money on the table when they change jobs.

Millennials are missing out on a lot of money.

Younger workers tend to job hop more than the older generations, but the problem is they're forgetting about the 401Ks they're leaving behind.

Research shows 59 percent of millennials between the ages of 25 to 34 had at least one retirement account at a prior employer.

But leaving that money can cost you.

"Money for your 60s isn't really on your mind if you're moving cities and changing to a new job and having to find a new place to live," financial advisor Ryan Frailich said.

Frailich had a client who left $10,000 in an old 401K. The account only made $400 over time.

His calculations found if other, more appropriate investments were made, that same $10,000 could have increased by $12,000.

"The risk is that if you don't sit down to make an affirmative choice, you might be leaving it in something that's an inappropriate investment," he said.

Another risk is if your old employer goes out of business, you may have a tough time tracking down your old 401K.

"Now you have to figure out, how do I get an employer signature from a company that no longer exists? A signature from your employer is often required," Frailich explained.

Experts say you don't have to immediately move your money as soon as you change jobs.

Just don't neglect it or forget about it.

If you are trying to find an old 401K, call the human resources department at your old company.

You can also learn more about benefits and labor statistics from the following sources:

U.S. Department of Labor
National Registry of Unclaimed Retirement Benefits
Pension Benefit Guaranty Corporation
Expanded missing participants program
Missing participants program for defined contribution plans
Related Topics:
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