Empower survey finds one in three Americans may have lost track of old 401(k)s

One in three Americans may have retirement savings sitting in accounts they lost track of after changing employers, and half of Gen Z say the same.

The research puts numbers on what Empower calls retirement drift — the accumulation of abandoned 401(k) accounts as workers move between employers. More than half of respondents, 53%, have switched employers three or more times, and 39% say their retirement savings are already scattered across accounts from different jobs. The share who may have lost track of an old account falls with age: 50% of Gen Z and 45% of Millennials, against 34% of Americans overall, 30% of Gen X and 14% of Boomers.

Two-thirds of respondents, 66%, wish someone had explained their savings options when they changed jobs, and 54% did not know they had several options after leaving an employer. Among those who do understand the options, 76% say clear, step-by-step guidance would make them more likely to act, and 70% would be more likely to consolidate old accounts if the process took less time.

Nearly half, 47%, say they have put off dealing with retirement savings, such as starting a rollover, because the process felt overwhelming. The figure is 58% among Gen Z, 57% among Millennials and 23% among Boomers. A majority, 54%, say managing retirement savings sits at the bottom of their financial to-do list, and the same share call retirement planning more confusing than other areas of personal finance.

Asked what would prompt them to review or act on their savings, 22% named talking with a financial professional, the most commonly cited catalyst. This publication has reported that 10.2% of advisers' wealth clients come from DC plans, and that nearly 40% of surveyed advisers say they lack time to prospect inside their plans.

Empower closed its Milliman deal in September, adding 1,500 plans, as this publication reported. The survey reports what individuals say about their own accounts, not what plan records show, so it does not count how many old accounts sit unclaimed in plan systems.

"Deciding what to do with a 401(k) from a previous employer can take a back seat when you're starting a new job and managing other financial priorities," said Jane Bartosik, SVP, Wealth Solutions at Empower. "These accounts can accumulate, making it harder to see your complete retirement picture and know what steps to take next."