Enhancing Emergency and Retirement Savings Act Unveiled
The bill would encourage retirement plan participation by giving people penalty-free access to funds in the event of an emergency.
Tag: leakage
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Data & Research
Data & Research
How to Prevent Retirement Plan Leakage
Educating participants about the importance of remaining committed to retirement savings and of the value of consolidating accounts is a good place to start, experts say.
Ways to Combat Leakage
The Savings Preservation Working Group says that at least 33% and as many as 47% of plan participants withdraw part or all of their retirement savings when switching jobs.
Hardship Withdrawals Spiked, Loans Dipped After Bipartisan Budget Act
The Bipartisan Budget Act of 2018 made it easier for retirement plan participants to access hardship withdrawals without taking loans first; since passage of the law, hardships withdrawals are up 40% in Fidelity’s book of business.
In 2013, Workers Removed $69 Billion from Retirement Savings
Withdrawals from IRAs accounted for most of the leakage, according to the GAO.
Fiduciary Reforms Impact Plan Leakage Trends, Income Decisions
Plan sponsors are being more conscious and cautious with respect to managing the implications of the DOL fiduciary rule—and this is impacting plan leakage and rollover decisions to a strong degree, Callan says.