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Nearly one in three workplace retirement accounts may sit dormant, according to new research released today by PensionBee. The study, which analyzed U.S. Department of Labor (DOL) data from 2012 to 2023, reveals that the growth of forgotten or left-behind 401(k) and 403(b) accounts has significantly outpaced the growth of active accounts opened in the last decade.
The research highlights a troubling paradox: while 401(k) adoption is rising, a record number of Americans are losing track of their savings as they move between jobs.
“Ten years ago, one in five accounts was reported to be dormant. This year, that number is much closer to one in three,” said Romi Savova, CEO of PensionBee. “While growing 401(k) participation is a success story, we cannot allow 'zombie accounts' to undermine the retirement security of millions. These funds often face higher fees and stagnant growth, trapped in plans where they are no longer a priority.”
Key Findings:
PensionBee’s analysis of over eleven years of federal reporting reveals a surge in dormant accounts. Key findings include:
- Dormant workplace retirement accounts doubled between 2012 and 2023, rising from 14.8M to 28M in just eleven years. In 2026, they are expected to reach 32.8M.
- While active 401(k)s grew by 44% between 2012 and 2026, the number of ‘dormant accounts’ accelerated nearly 3x faster, ballooning by 130%.
- By the end of 2026, PensionBee estimates over 30% of all funded workplace accounts could be dormant, up from 21% in 2012.
