By Spencer Williams | October 5, 2016

In his most recent article in
MarketWatch, RCH’s Spencer Williams notes the upcoming ‘National Save for Retirement Week’ event, and employs some clever word-association that has readers re-thinking the meaning of the word “save.”

As Williams points out, the worst decision an employee can make is not to “save” in the first place. If they’ve made the right call to participate in their employer’s qualified plan, then the word “save” can take on a whole new meaning at the point they change jobs, when they may need to be rescued from the second-worst decision: to cash out their retirement savings.

Citing a recent study by EBRI and ICI, Williams notes that consistent participation in a 401(k) plan is closely-linked to higher levels of job tenure. Thus, if plan participants can avoid cashing out at job change and roll their balances forward, they create “synthetic tenure” – the unbroken, continuous participation in a qualified plan throughout their working career.

When National Save for Retirement Week begins on October 16, remember to “save” your retirement by never cashing out and by always keeping your savings invested in a defined contribution plan.