Ep 19: Retirement Leakage

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 JobMedium: 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 [email protected]. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefinancialpurpose.substack.com