MANY WORKERS CASH OUT SAVINGS 57% DO NOT ROLL OVER 401(K) BALANCES WHEN MOVING: SURVEY.(Statistical Data Included)

Business Insurance, September, 1999 by FLETCHER, LEE

When packing up their belongings to take to a new employer, the majority of 401(k) plan participants are not bringing retirement savings along, instead cashing out of their previous plans, according to Hewitt Associates L.L.C. A recent Hewitt study found that 57% of employees leaving their companies are choosing cash payments from their savings plans instead of rolling over the balances to their new employers' plans or into individual retirement accounts.

In 1993, when Hewitt conducted a similar survey, the percentage was 64%, but the decrease in workers cashing out their savings still is not enough, according to Mike McCarthy, a Hewitt 401(k) consultant in Lincolnshire, Ill. ``People see it not so much as money that they need to keep for retirement,...

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