Empower survey finds 76% of US adults want step-by-step guidance

Seventy-six percent of U.S. adults say clear, step-by-step guidance would make them more likely to keep retirement savings organized, according to Empower's Retirement Drift study published this month.

PLANADVISER reported the survey, fielded in July and August among 2,005 U.S. adults. Thirty-nine percent of respondents said they had retirement savings spread across accounts from different employers, and 54% said that made it harder to plan for retirement. Job changes were common: 84% said they had changed employers at least once, 53% three or more times and 27% at least five.

For sponsors and recordkeepers, the survey points to the moment an employee leaves: 66% of respondents wished someone had explained their options when they changed jobs. Fifty-four percent said they were unaware of those options, including a rollover into a new employer's 401(k). For advisers, the addressable pool is the 47% who delayed a decision on old savings, including starting a rollover, because it felt overwhelming.

Half of Gen Z respondents and 45% of Millennials said they may have had retirement savings from a previous employer that they had lost track of. That compares with 30% of Gen X and 14% of Baby Boomers. Fifty-seven percent of Gen Z and 45% of Millennials said they were not confident they could locate all their retirement savings today.

PensionBee estimated in a white paper also released this month that employers move nearly 2 million left-behind accounts with balances under $7,000 out of 401(k) plans and into automatic rollover IRAs each year. About 13 million accounts holding $43 billion will sit in those IRAs by 2030. The accounts are meant to stay put for 30 to 60 days; PensionBee found 87% were still there after a year.

As Private Wealth Daily previously reported, EBRI and PensionBee found 68% of automatic rollover IRAs lost value in a year, with opening fees as high as $100 and $5 monthly maintenance.

In separate questions, 70% of respondents said a better understanding of their retirement income options would make them more likely to stay organized, and 70% said they would be more likely to combine old accounts if doing so took less time.