Nearly One-Third of All Workplace Retirement Accounts May Be Zombie 401(k)s, Finds PensionBee

Rhea-AI Summary

PensionBee (OTC:PBNYF) analysis of DOL Form 5500 data finds that dormant 401(k) and 403(b) accounts have surged, doubling from 14.8M in 2012 to 28M in 2023 and an estimated 32.8M in 2026. PensionBee estimates over 30% of funded workplace accounts could be dormant by end‑2026, up from 21% in 2012. Active workplace accounts grew 44% (2012–2026), while dormant accounts rose ~130%. Small monthly fees on forgotten accounts (example: $4.55/month) can compound into large lifetime losses. Under SECURE 2.0, employers may auto‑roll balances under $7,000 into Safe Harbor IRAs, which can be parked in low‑yield cash equivalents. PensionBee urges locating, consolidating, rebalancing, and automating retirement savings.

Positive

• Dormant accounts rose from 14.8M to 28M (2012–2023)
• PensionBee projects 32.8M dormant accounts in 2026
• Active workplace accounts grew 44% (2012–2026)
• SECURE 2.0 permits auto‑rollover of balances under $7,000

Negative

• Dormant accounts accelerated by 130% (2012–2026 estimate)
• Over 30% of funded workplace accounts may be dormant by 2026
• Forgotten accounts with $4.55/month fees can cost ~$18,000 over a career
• Auto‑rollovers can leave funds in cash equivalents that may erode

PensionBee analysis of Form 5500 data suggests that over 30% of all 401(k) and 403(b) accounts may be dormant

NEW YORK, Jan. 21, 2026 (GLOBE NEWSWIRE) -- 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 active¹ 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.
  
  

The Cost of Inaction

As the average American worker changes jobs more frequently, the risk of "compounding loss" intensifies. While leaving behind a 401(k) is not inherently bad, the practice can be costly. Previous PensionBee research found that a seemingly small $4.55 monthly fee on a forgotten account can snowball into nearly $18,000 in lost wealth over a career.

Under current SECURE 2.0 regulations, employers can automatically roll over "left-behind" accounts with balances under $7,000 into Safe Harbor IRAs. These accounts are often parked in cash-equivalent investments that may fail to keep pace with inflation, risking stagnation or erosion, in some cases, down to $0.

“More Americans gain access to retirement benefits through work every year. But access is really just the first step. Auto-enrollment without auto-portability will only increase the likelihood of forgetting a 401(k),” added Savova.

Four Simple Moves To Safeguard Your Retirement

To prevent retirement savings from drifting out of reach, PensionBee recommends four immediate actions:

1. Find old accounts: Do it yourself with the DOL’s Lost and Found database, or find a retirement provider that can track down lost accounts for you.
2. Consolidate old accounts into a single IRA or roll over into your new employer’s 401(k).
3. Review and optimize investment allocations regularly, or choose a target-date portfolio that rebalances automatically.
4. Automate contributions to ensure consistent saving.

About PensionBee

PensionBee (LON:PBEE; OTCQX:PBNYF) is a leading retirement savings provider, helping people easily consolidate, manage, and take control of their retirement savings. The company manages over $9 billion in assets and serves approximately 300,000 customers globally, with a focus on simplicity, transparency, and accessibility. PensionBee offers Traditional, Roth, SEP, and Safe Harbor IRA portfolios with ETFs like SPY and MDY from State Street Investment Management, one of the world’s largest asset managers. PensionBee is publicly traded on the London Stock Exchange (PBEE) with U.S. shares available on OTCQX (PBNYF).

Notes

The information provided in this announcement, including any projections for investment returns and future performance, is for informational and educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal. PensionBee is not liable for any losses or damages arising from the use of this information. Projections and forecasts are based on assumptions and current market conditions, which are subject to change.

______________________
¹ ‘Active D.C. participants’ per Form 5500

Media Contact:
Adela McVicar
SR PR Manager, PensionBee
adela.mcvicar@pensionbee.com

^{PensionBee Inc. is registered with the Securities and Exchange Commission as an investment adviser. We do not provide in-person advice. PensionBee Inc (Delaware Registration Number SR20241105406 ) is located on 85 Broad Street, New York, New York, 10004.}

FAQ

What did PensionBee report about dormant 401(k) accounts for PBNYF on Jan 21, 2026?

PensionBee reported dormant 401(k)/403(b) accounts doubled to 28M (2012–2023) and may reach 32.8M in 2026.

How large a share of workplace accounts could be dormant by end of 2026 for PBNYF investors?

PensionBee estimates over 30% of funded workplace accounts could be dormant by end‑2026, up from 21% in 2012.

What financial impact did PensionBee quantify from forgotten 401(k) fees in the PBNYF release?

The release cites a previous finding that $4.55/month in fees on a forgotten account can compound to nearly $18,000 lost over a career.

How does SECURE 2.0 affect left‑behind accounts per PensionBee (PBNYF)?

Under SECURE 2.0, employers can automatically roll balances under $7,000 into Safe Harbor IRAs, which may be placed in low‑yield cash equivalents.

What investor actions does PensionBee recommend to protect retirement savings (PBNYF)?

PensionBee advises to find old accounts, consolidate or roll over, review allocations, and automate contributions.

Did PensionBee report growth in active workplace accounts in the PBNYF announcement?

Yes; PensionBee reported active 401(k) accounts grew 44% between 2012 and 2026.