Retirement savings warning: Leaving 401(k) or IRA money in cash could cut your nest egg by 75%

Many people saving for retirement make a simple mistake by leaving money in cash instead of investing. This can slow growth and reduce future savings.

Key takeaways

Quick scan — what you need to know:

• Many people saving for retirement make a simple mistake by leaving money in cash instead of investing.
• This can slow growth and reduce future savings.
• Job changes and confusing rollover options add to the problem.
• Experts say checking accounts, combining funds, and using simple investment options can help avoid losses and improve long-term retirement planning.

Background

What led here, in plain terms:

• Many people saving for retirement make a simple mistake by leaving money in cash instead of investing.
• This can slow growth and reduce future savings.
• Job changes and confusing rollover options add to the problem.
• Experts say checking accounts, combining funds, and using simple investment options can help avoid losses and improve long-term retirement planning.

Why it matters

Why readers and decision-makers should care:

• Many people saving for retirement make a simple mistake by leaving money in cash instead of investing.
• This can slow growth and reduce future savings.
• Job changes and confusing rollover options add to the problem.