Nearly One-Third of All Workplace Retirement Accounts May Be Zombie 401(k)s, Finds PensionBee

Core Insights - Nearly one in three workplace retirement accounts may be dormant, with over 30% of all 401(k) and 403(b) accounts potentially inactive [1][2][8] - The growth of dormant accounts has significantly outpaced active accounts, with dormant accounts increasing by 130% from 2012 to 2023, while active accounts grew by 44% [8] Key Findings - The number of dormant workplace retirement accounts doubled from 14.8 million in 2012 to 28 million in 2023, and is expected to reach 32.8 million by 2026 [8] - The percentage of funded workplace accounts that are dormant is projected to rise from 21% in 2012 to over 30% by the end of 2026 [8] - The average American worker's job changes more frequently, leading to a higher risk of "compounding loss" from forgotten accounts, with a small monthly fee potentially resulting in nearly $18,000 in lost wealth over a career [4] Regulatory Context - Under current SECURE 2.0 regulations, employers can automatically roll over "left-behind" accounts with balances under $7,000 into Safe Harbor IRAs, which may not keep pace with inflation [5][6] Recommendations - PensionBee suggests four immediate actions to safeguard retirement savings: find old accounts, consolidate them, review investment allocations, and automate contributions [9]