How to Find Unclaimed Retirement Benefits
Many Americans may be unaware they have unclaimed retirement benefits waiting to be rediscovered.
According to the Bureau of Labor Statistics (BLS), baby boomers, on average, have held 12.3 jobs. In leaving one job and taking on another, retirement accounts can get lost in the shuffle. In due course, some employees may forget about these accounts completely.
Capitalize, a platform that helps employees roll over their 401(k)s, estimated that as of May 2023, there were 29.2 million left-behind or forgotten 401(k) accounts holding approximately $1.65 trillion in assets, representing a quarter of all 401(k) plan assets.
The Pension Benefit Guaranty Corporation, a federal agency overseeing retirement security for Americans, reports that over 80,000 Americans haven’t claimed their earned defined benefit pension. Those unclaimed pensions total hundreds of millions of dollars, with one individual being owed almost $1 million!
Whether it’s a forgotten 401(k) account or an unclaimed pension, these lost assets can significantly impact one’s financial well-being in retirement.
This article explores two key avenues for finding unclaimed retirement benefits: contacting former employers and utilizing unclaimed property portals.
What Are Unclaimed Retirement Benefits?
It’s uncommon for a person to stay with one employer for an entire career. According to Bankrate’s 2023 job seeker survey, more than half (56 percent) of American workers said they were very likely or somewhat likely to look for a new job in the next 12 months.
Additionally, some companies go out of business after several years or decades of successful operations.
With both companies and people in constant transition, it is common for former employees to lose track of their accrued retirement benefits. And since these funds typically remain invested, they can add up to significant amounts of money.
What’s more, some people might know they have retirement benefits available to them but have no idea how to find what they have.
Unclaimed retirement benefits encompass retirement account balances abandoned by former participants of retirement plans.
How to Search for Unclaimed Retirement Benefits
By taking proactive steps to locate and reclaim these funds, you can secure a brighter financial future.
Let’s dive in and unlock the hidden treasures of unclaimed retirement benefits.
- Ask Your Former EmployerOne of the initial steps in the pursuit of unclaimed retirement benefits involves reaching out to your former employer(s).
Even if you’ve changed jobs or retired, your previous employer may still hold retirement funds on your behalf.
Follow these steps to inquire about potential unclaimed benefits:
- Gather Information: Collect pertinent details if you suspect you left funds behind with a former employer still in operation. This includes their names, contact information, your employment dates, and any enrolled retirement plans.
- Contact HR: Reach out to the human resources department of each former employer to inquire about the status of your retirement accounts and request info on any unclaimed benefits. Provide them with your personal details and the relevant employment info to facilitate the search. Typically, HR will have info on your account or point you in the right direction.
- Consult Plan Administrators: If your former employer has gone out of business, changed ownership, or undergone corporate restructuring, contact the plan administrators to determine the current custodian of your retirement accounts. They can guide you through the process of accessing or transferring your unclaimed benefits.
- Check Unclaimed Property Portals:In addition to contacting former employers directly, another valuable resource for finding unclaimed retirement benefits is utilizing unclaimed property portals. These state-run websites allow individuals to search for any unclaimed assets, including retirement funds, held by government agencies.
Here’s how to explore unclaimed benefits portals:
- Research Unclaimed Retirement Benefits Websites: You can search several websites for unclaimed retirement benefits. These include The Department of Labor’s abandoned plan database, The National Registry of Unclaimed Retirement Benefits, FreeERISA, The Department of Labor’s Form 5500 search, The Pension Benefit Guaranty Corporation’s trusteed plan search, and unclaimed.org operated by The National Association of Unclaimed Property Administrators.
- Perform a Search: Enter your name, variations of your name, and any other requested information into the search fields provided. Be sure to search for variations of your maiden name or previous addresses if applicable.
- Follow Instructions: Each unclaimed property portal will have its own process for claiming your assets. Follow the instructions provided to initiate the claims process and provide any necessary documentation.
- Check Multiple States: Visit the unclaimed property website of each state where you have lived or worked. Search for a dedicated section related to retirement benefits or unclaimed pensions. Unclaimed retirement benefits may be held in states where you have previously resided or worked.
Note: States manage their unclaimed property sites with varying rules. Be mindful that regulations for unclaimed property might differ among states.
Conclusion
Finding unclaimed retirement benefits can be rewarding, providing a welcome boost to your financial well-being.
You can uncover forgotten or misplaced retirement funds by asking your former employer about potential unclaimed benefits and utilizing state-run unclaimed property portals.
A financial advisor can also help you track down retirement benefits.
Take the proactive step today to reconnect with your lost treasures and secure a more comfortable and financially secure retirement. Remember, the path to unlocking unclaimed retirement benefits begins with your curiosity and determination to reclaim what is rightfully yours.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.