Three reasons for retirees to stay in an employer plan

As plan participants prepare for the transition to retirement, there are many things to consider, including what to do with the money they’ve saved in their employers’ retirement plans. They may not realize that they can keep their assets in these plans instead of moving (or “rolling over”) their balance to an individual retirement account (IRA). Not only is this an easier approach, but staying in plan offers participants three potential benefits:

1. Lower fees: Plan participants can potentially avoid higher fees — often found in IRAs — since their employers’ retirement plans may have the size and scale to offer lower-priced, high-quality investments.
2. Ongoing retirement resources and support: When participants are ready to retire, they’ll continue to have access to the same wealth of resources and tools available to support their financial well-being.
   
3. Investment oversight: Unlike some IRAs, an employer acts as a plan fiduciary with its employees’ best interests in mind when evaluating fees, fund performance, and suitability of the investments offered.

Download the infographic to show participants why their defined contribution savings account may be a great place to keep their money, even after they retire.