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Automatic 401(k) Rollovers Cut Cash-Outs, Study Finds

Original: Automatic 401(k) rollovers reduce cash-outs, research finds — but few accounts reach new employer plans

New research finds that automatic 401(k) rollovers reduce the amount of retirement savings workers cash out when changing jobs, helping preserve long-term nest eggs. However, the study notes that only a small share of rolled-over accounts ultimately end up in a new employer's retirement plan, leaving many savers with funds sitting outside workplace plans. The findings highlight both the benefits and limits of automatic portability programs for retirement savings.

Why now: New research on retirement savings behavior and automatic rollover programs has just been published, drawing attention from personal finance media.

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