Nearly One-Third of All Workplace Retirement Accounts May Be Zombie 401(k)s, Finds PensionBee
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 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. 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:
- Find old accounts: Do it yourself with the DOL’s database, or find a that can track down lost accounts for you.
- Consolidate old accounts into a single IRA or roll over into your new employer’s 401(k).
- Review and optimize investment allocations regularly, or choose a target-date portfolio that rebalances automatically.
- 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.
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1 ‘Active D.C. participants’ per Form 5500
Media Contact:
Adela McVicar
SR PR Manager, PensionBee
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.
