Companies Urge Retiring Workers to Leave Something Behind—Their Money

via Wall Street Journal

American employers have a new message for their workers: When you go, please leave your 401(k) behind.

Companies from International Paper Co. to United Technologies Corp. are increasingly urging employees to keep their nest eggs in their corporate plans when they change jobs or retire. The shift is turning companies and their plan managers into big—and unexpected—competitors for the business of overseeing retirees’ money.

The change is being driven by the shifting economics of retirement as baby boomers wrap up their working lives. Companies are worried that trillions of dollars of assets could be yanked out of their 401(k) plans as that demographic bubble moves on, hurting their leverage to negotiate lower fees with the outside money managers that run their retirement-savings plans.

Read the full article here

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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