Millions of people move between jobs each year, leading to abandoned 401(k) accounts, cashed-out savings, and extra work for benefits teams. $92 billion in retirement savings vanishes yearly as participants cash out from frustration with moving their money.

For medium and large organizations, these challenges multiply across thousands of participants. Benefits teams spend countless hours on paperwork. Forgotten accounts pile up fees. And participants grow increasingly frustrated with their inability to manage their retirement savings effectively.

This article explores how organizations can solve these retirement transfer challenges. We'll examine what's driving the problems, what participants actually want, and solutions to improve transfers.

The Reality of Manual Transfers

Participants switch jobs an average of 12 times throughout their careers. Yet moving retirement accounts remains difficult. 89% of participants who start a transfer never finish it. This contributes to millions of accounts sitting forgotten in the U.S.

The consequences extend beyond lost accounts. When faced with complex transfer requirements, 17% of participants cash out their accounts, resulting in losses in retirement savings yearly. This decision often stems from frustration with lengthy waiting periods and complicated paperwork.

Old methods create barriers in multiple ways. Participants lose track of their savings across multiple accounts. Benefits teams spend hours handling paperwork and following up on incomplete transfers. Organizations face higher administrative costs and reduced plan effectiveness.

What Participants Need

Modern participants want retirement benefits that match their work lives. 83% of participants want retirement plans that move easily between jobs. This makes sense, given how often people change roles today.

The stakes are high. 63% say finances add to their stress, and only 30% trust their financial decisions. Access to workplace emergency savings ranks top priority as participants balance immediate needs with future security.

Organizations face a clear opportunity. By offering retirement benefits that move easily with participants and provide clear choices, they stand out in attracting and keeping talent. This matters more than ever in competitive hiring markets.

Better Technology Brings Better Transfers

New solutions tackle old challenges through automation, simpler steps, and fewer mistakes. Modern platforms replace paperwork with secure, automated systems. Instead of spending weeks gathering documentation, participants complete key steps in minutes.

Account discovery marks a major improvement. Imagine a system where participants are empowered to locate their old accounts using only the most basic information about previous employers (This is what we’ve built at Manifest). This solves a common problem of participants often losing track of accounts during job changes.

Making Transfers Work Better

Our approach has proven the impact technology brings to the transfer process. Participants find their accounts using just their previous employer's name - no complex account numbers are needed. This removes a major barrier to starting transfers.

Each step comes with clear guidance and instant support. Quality checks catch potential issues early, avoiding delays that frustrate participants and benefits teams. Our direct links to major retirement providers mean faster completion times.

The results matter for both participants and organizations. Participants spend minutes, not hours, on transfers. Benefits teams free up time for more valuable work. Organizations see higher plan participation and engagement.

Measuring Real Results

When transfers become simple, more participants keep their retirement savings invested. Clear guidance helps participants make better decisions about their money. Account consolidation builds larger balances over time.

Benefits teams gain, too. Automation cuts administrative tasks by hours each week. Better tracking means fewer lost accounts and less time spent on manual follow-ups. Organizations see higher satisfaction scores and improved retention.

Organizations using automated transfers usually report:

  • Higher account consolidation rates
  • Reduced cash-out incidents
  • More time for strategic work
  • Better participant satisfaction
  • Increased plan participation

The Path Forward

Technology creates a better way to handle retirement transfers, giving participants more control and confidence in managing their savings. By automating administrative work, these solutions free up benefits teams to focus on higher-value tasks. As a result, organizations strengthen participant trust and improve talent retention.

These improvements matter more as participant mobility increases. Organizations that make transfers simple build stronger, more effective retirement plans and remove an unreasonably massive pain on the path to retiring in good standing.

Want to help your employees stay invested and save time? Contact us to get set up with an add-on that makes your retirement plan work better for everyone in your organization.