Many individuals move between jobs throughout their careers, often accumulating various financial benefits that can be easily forgotten.
It's not uncommon for people to lose track of pensions or other benefits accrued from previous employment, especially when changing industries or starting new ventures.
The Common Oversight
When transitioning from one job to another, important financial assets like pensions can be overlooked. This oversight is common due to shifting focuses, such as starting a new career path or managing immediate financial obligations, leaving long-term benefits like retirement savings or pensions unattended.
Don’t Miss: What Is the Ideal Retirement Savings Goal? Recent Study Says Over $1 Million
The Prevalence of Forgotten Pensions
Previously, many companies offered pensions, but the trend shifted in the latter part of the 20th century as the costs of maintaining these plans increased.
Instead, companies began offering 401(k) plans, which are dependent on employee contributions and can fluctuate with the stock market's performance. As a result, many individuals have either forgotten about or are unaware of these benefits from past employment.
The lack of awareness about these old pension plans sometimes leads to surprising financial benefits later on. There are numerous instances where individuals are contacted about unclaimed pensions that can significantly boost their retirement income.
Focus on 401(k)s
It’s surprising how many 401(k) accounts are left unclaimed. With more than $1.65 trillion in assets in forgotten 401(k)s due to frequent job changes, individuals are advised to contact previous employers to check for any leftover accounts.
Unclaimed 401(k)s can be rolled over into current retirement accounts, consolidating retirement funds and possibly reducing management fees.
Uncovering Other Forgotten Funds
Aside from employment-related savings, there are other types of forgotten funds such as old bank accounts or utility deposits that can be recovered.
States have unclaimed property lists where individuals can search for any assets listed under their names, potentially reclaiming funds they no longer remembered.
Where to Begin the Search
For those interested in reclaiming forgotten pensions or other savings, there are government websites that provide databases for searching unclaimed assets grouped by different categories.
These resources are helpful starting points for individuals looking to recover funds that could assist them financially, especially during retirement.
Every bit of savings counts, and recovering forgotten funds can provide a welcome boost to personal finances. It is beneficial for everyone to regularly check on their financial history to ensure no asset is left unclaimed.
-
Previous Article: Good News for Credit Card Owners: Possible Lower Interest Rates Coming Up
