Vanguard study: auto portability cuts small 401(k) cash-outs to 9%, but only 6% matched to new plans
Key points
- Cash-out rate for balances under $1,000 fell from about 50% to 9%
- Cash-out rate for $1,000–$7,000 balances fell from 39% to 31%
- Of roughly 220,000 participants transferred, only 6% have been matched with a new employer plan
Per InvestmentNews, a Vanguard study of 83 plans in the Portability Services Network found cash-out rates for departing employees with balances under $1,000 fell from about 50% to 9%; for $1,000–$7,000 balances, from 39% to 31%. Of roughly 220,000 participants transferred, only 6% have been matched with a new employer plan. PensionBee also has a separate study.
Original report: 401ktv.com ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.