How Can You Determine If Money Has Gone Missing

By Kerri Fivecoat-Campbell of Next Avenue.

One of my former co-workers messaged me on Facebook a few years back to ask if I had applied for my pension plan yet, “Hello have you applied yet??”.

“Pension?” she replied incredulously to my query about pensions from major banks 35 years prior. Another colleague from our workday had told her of it and explained we could settle our pensions as lump sum payments any time before turning 60, while monthly payment arrangements will have to wait until then.

My friend gave me a number that allowed me to access my funds either through one lump-sum payout or monthly installments for life, I chose the latter option and received paperwork to keep for one year, or until six months before my 60th birthday, when it would expire.

Retirement Was Never on My Mind
After being “JD’d” from that employer, I transitioned into freelance writing full time and eventually converted my 401(k) into an IRA for retirement purposes.
At 34, when I made the leap into self-employment and left my previous role behind me, building my business and fulfilling my ambitions were my top priorities – retirement was far away!
As someone with impeccable credit and who regularly reconciles my bank account online at the end of every week, why did it slip my mind that my 10-year tenure provided for a pension plan?

As it turned out, my experience wasn’t unique: even though my friend also took their 401(k) when leaving their bank job, she didn’t discover there was an unclaimed pension waiting for her until another former employee informed her of it.

Imrana Begg, executive director for Experior Financial Group notes, “People often change jobs during their working years. According to data compiled by Experior, many hold multiple employments over their life time – oftentimes just forgetting about retirement accounts once they change positions or change companies altogether; then moving or getting married changes this further as paperwork never reaches them in full.

Pensions were once common among American employers but have since fallen out of fashion due to rising costs associated with maintaining them and providing benefits. Instead, private non-union firms increasingly relied upon workers’ contributions in retirement savings accounts through plans such as 401(k). Many even offered matching funds so workers’ funds were invested broadly across stock funds for maximum success in saving for retirement savings.
Christian Brim, 53, describes how five years ago his then 70-year-old mother received an unexpected letter about an unknown pension plan from one of her jobs with Oklahoma state government. At first she suspected it might be some type of scam but eventually reached out tentatively and tentatively with the company that held onto this pension fund to inquire further about its contents.
Brim is fond of recalling how calling Social Security changed her financial life: she had barely scraped by as she retired and missed the deadline to claim the lump sum; yet still was able to claim nearly $1,000 each month from Social Security.
Although fewer employees qualified for pensions after working in private sectors since the 70s and ’80s, those that did could become lucky like my friend and me. Begg advises workers not to wait around for employers or pension companies to contact them; rather they should create a list of past employers to contact and ensure no pension opportunities existed at any point in time.
Capitalize, an online platform dedicated to discovering lost 401(k) accounts and rolling them over, has identified 29.2 million forgotten 401(k)s holding $1.65 trillion of assets; since COVID pandemic caused “Great Resignation” early 2020s the forgotten accounts have grown over 20% since it triggered.
Begg suggests contacting former employers if you believe there may be unclaimed 401(k). If that turns out to be the case, and your retirement assets were left behind there, in order to transfer them quickly over into tax-deferred accounts for safe keeping.
Begg explains, a lost or forgotten 401(k) likely still sits in the stock market and you likely don’t want it in such an unpredictable market as an older individual.”
Begg advises if you discover unintended assets that you’d forgotten you had, it may be prudent to consult a financial adviser about transferring or rolling them over into an IRA at your new employer, or possibly investing them into an annuity contract.
As soon as his aunt saw Brim’s name on a list for unclaimed property in his state, she informed him he’d left an IRA full of $1200 that had gone unclaimed; “I completely forgot its existence!” says he was able to retrieve this cash quickly.
State unclaimed property websites can help you discover any lost funds lingering in forgotten bank accounts, annuity payouts, stock dividends or utility deposits that might otherwise go undetected.
My pension, while less than $300 monthly, makes an impactful statement about my budget and lifestyle. In researching this story, I also discovered funds in my late husband’s 401(k), that was unaccounted for at his death, along with savings bonds I bought when working my first job during my teens and early 20s – plus six unclaimed assets through state agencies in either his name or mine!
None of it will make me rich, but every bit counts when approaching or entering retirement.
Online Guide for Missing Assets This government website can lead you to databases in search of lost pensions, VA benefits, taxes, investments and savings bonds as well as bankruptcy proceedings.