Every year, our nation’s retirement system loses $92 billion in savings because 401(k) plan participants prematurely cash out their accounts when they change jobs. This is the most recent estimate from the Employee Benefit Research Institute (EBRI), and while this finding affects all American workers, minorities are hit hardest.
African-American and Hispanic job-changing participants cash out at much higher annual rates than the national average. While 40% of all participants who switch employers cash out within the first year after job change, that percentage rises to 63% for African-Americans, and 57% for Hispanics, according to industry research reports.
