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Citigroup Employees: Don’t Let Forgotten 401(k) and Pension Accounts Drain Your Retirement

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'Citigroup employees should recognize that forgotten 401(k) accounts are not just numbers left behind—they represent real retirement dollars that can be reclaimed and consolidated to bolster their financial future.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Citigroup employees who leave old 401(k) accounts unattended risk higher fees and missed opportunities, which is why it's wise to track and consolidate these balances into a more organized retirement portfolio.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Why so many retirement accounts are forgotten and the risks involved.
The financial costs of leaving accounts unattended and how to locate old 401(k)s or pensions.
The options available for handling old accounts and why consolidation may matter.

The $2 Trillion Oversight in Retirement Savings: Forgotten 401(k) Accounts

The aim of retirement savings is to deliver a reliable base for the future. Yet one surprising trend continues to grow: trillions of dollars locked in 401(k) accounts that have been forgotten or left behind. According to recent research, there are about 31.9 million forgotten or left-behind 401(k) accounts, collectively holding roughly $2.1 trillion in assets. ¹ That number is up 30% since just two years ago, and has almost doubled over the past decade. ¹

On average, a forgotten 401(k) account holds about $66,691. ¹ So how do these accounts get forgotten? After leaving a job, many workers leave their 401(k) assets inside their previous employer's retirement plan. For those who move on from Citigroup or other large employers, letting these balances rest unattended can incur long-term opportunity costs.

Why Retirement Accounts Get Forgotten

It might seem far-fetched to lose track of retirement money, but greater job mobility has made it much more common. Workers shift roles or employers more often today than in the past, and each change introduces a decision point on how to handle retirement balances. Some leave assets with previous employers; others roll them into IRAs or into new employer plans.

It’s not always problematic to leave funds in an older plan. But without regular attention, complications may arise. Many employers cease covering plan administrative costs when an employee departs, which can slowly erode the account. Maintaining multiple accounts can also result in higher overall management fees, less oversight over retirement assets, and missed growth potential. For those with long tenures, especially in large corporations, forgotten accounts often consequently silently diminish in value.

The Cost of Inattention

When accounts are left unmanaged, investment choices made years ago may no longer match your situation or current market conditions. Portfolios set long ago might underperform relative to better-aligned allocations today. Over time, fees, a lack of rebalancing, and outdated allocation strategies can shrink balances.

Federal regulators are aware of the problem. Tools like the Retirement Savings Lost and Found Database ² have been launched to help workers trace and reclaim forgotten retirement account balances. This applies to all workers, including those exiting major corporations, since even meticulous savers may inadvertently leave funds behind.

How to Locate Forgotten 401(k)s and Pensions

Tracing down old retirement accounts may require using multiple resources:

1. Unclaimed Retirement Benefits National Registry – Search by Social Security number for unclaimed balances.
2. Pension Benefit Guaranty Corporation (PBGC) – Tracks discontinued pension plans and missing participants.
3. Former Employer or HR Departments – Companies or their successors may retain records.
4. Historical Records – W-2s, benefit statements, or plan summaries often contain clues.
5. Department of Labor’s Form 5500 Database – Lists plan administrators and contact information.
6. State Retirement Boards – For public-sector pension plans.
7. U.S. Department of Labor Help Line – Offers guidance on ERISA-regulated plans.

For employees who have changed divisions, sites, or roles within large firms, these steps help consolidate scattered retirement holdings.

Your Options for Old Accounts

When departing from a job, most workers face four main choices for handling their 401(k):

Move it to a new employer’s retirement plan — consolidates balances and keeps tax treatment intact.
Rollover into an IRA — gives broader investment flexibility, often at lower cost.
Cash it out — comes with taxes and penalties, reducing long-term results.
Leave it with the old employer’s plan — keeps the account open, but no new contributions or employer matches apply, and fees may escalate.

For those nearing retirement, making a considered choice can determine whether past balances continue contributing or quietly decline.

Why Consolidation Matters

Many financial advisors recommend combining accounts when feasible. Consolidation reduces administrative burdens, simplifies oversight, and aligns portfolios more consistently. Having multiple accounts across former employers increases complexity—especially during required minimum distribution (RMD) years.

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To further complicate matters, research suggests that inactive accounts often lag in performance, facing higher fees and fewer investment options. ¹ For someone with a long Citigroup career plus various other roles, consolidation can help maintain coherence across retirement holdings.

The Modern Rollover Advantage

Historically, rollovers involved paperwork, delays, and mailed checks. Today, electronic direct rollovers can transfer funds from one retirement plan to another—or into an IRA—without triggering taxes or penalties. That streamlines the process dramatically.

This means professionals leaving large firms no longer need to dread the complexity of combining accounts. With modern rollover tools, managing retirement assets is more accessible than ever.

The Bigger Picture

Forgotten accounts reflect how job changes and corporate shifts complicate retirement planning. Nationally, more than $2.1 trillion sits in dormant accounts, and neglecting them may cost individuals hundreds of thousands of dollars over their careers. ¹

Citigroup employees may risk underutilizing retirement balances if they omit to manage legacy accounts. But with available tools, consolidation, and ongoing oversight, those dormant assets can once again contribute meaningfully to retirement readiness.

Final Thoughts

The trillions in neglected 401(k)s highlight a significant gap in retirement planning. While retaining assets in a prior employer’s plan is permissible, it often comes with higher costs and less visibility. Fortunately, resources—like government registries and streamlined rollovers—make it easier to recover and consolidate past accounts.

For Citigroup employees, the takeaway is simple: don’t let forgotten balances slip away. With attention and action, those legacy accounts can become active components in a more cohesive retirement approach.

Sources:

1. Capitalize Money, Inc. ' The True Cost of Forgotten 401(k) Accounts ,' Sept. 30, 2025.

2. U.S. Department of Labor, Employee Benefits Security Administration. Retirement Savings Lost and Found Database . 18 Nov. 2024.

What are the main eligibility criteria for participating in the Citigroup Pension Plan, and how can Citigroup employees ensure they meet these requirements throughout their employment? Furthermore, what implications does the merger of prior pension plans into the Citigroup Pension Plan have on the benefits for employees from acquired companies, and what steps should they take to understand how their previous service is credited under Citigroup?

Eligibility Criteria for Citigroup Pension Plan Participation: Employees hired before January 1, 2007, are eligible to participate in the Citigroup Pension Plan if they were employees of a Participating Employer. Employees hired after that date are generally not eligible to participate. Additionally, employees from acquired companies may have their prior service credited under Citigroup. It's important for these employees to review the plan's specific provisions or contact the Citi Pension Center to ensure accurate service credit(Citigroup_Pension_Plan_…).

How does the Citigroup Pension Plan address survivor benefits for employees who pass away before their pension benefits commence, and what steps must their beneficiaries take to claim these benefits? Additionally, how can employees ensure that their loved ones are adequately informed about the options available should they face this unfortunate event?

Survivor Benefits for Pre-Retirement Death: If an employee passes away before benefits commence, the surviving spouse may receive a lifetime annuity based on the account balance or opt for a lump sum. Employees should ensure that their beneficiaries are aware of these options and the process to claim benefits(Citigroup_Pension_Plan_…).

For Citigroup employees wanting to learn more about the pension plan's benefits and options available to them, what contact methods should they use? How does Citigroup facilitate communication regarding the pension plan, and what are the most efficient ways for employees to get their questions answered?

Contacting Citigroup for Pension Plan Inquiries: Employees can contact the Citi Pension Center by phone at 1-800-881-3938 for U.S. inquiries or use the online portal to access their pension details. These methods provide the most efficient way to get answers to any pension-related questions(Citigroup_Pension_Plan_…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Citigroup is planning to cut 20,000 jobs as part of a major restructuring effort to streamline operations and save $2.5 billion. The bank is also focusing on international growth and simplifying its management structure from 13 layers to eight. Despite the layoffs, Citigroup continues to offer comprehensive retirement benefits, including 401(k) plans and health benefits. Understanding these benefits is important in today's political environment.

Citigroup grants RSUs that vest over several years, giving employees shares upon vesting. They also provide stock options, allowing employees to purchase shares at a set price.