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CBRE Group Employees: Discover How to Avoid a Costly $130,000 Oversight in Your Retirement Planning

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Healthcare Provider Update: Healthcare Provider for CBRE Group CBRE Group does not operate its own healthcare facility but partners with various healthcare providers to offer employee health benefits. This typically includes a variety of insurance options that may involve working with national insurers, enabling employees to access a diverse range of healthcare services. Potential Healthcare Cost Increases in 2026 In 2026, healthcare woes are poised to intensify for CBRE Group employees as they may face substantial increases in out-of-pocket costs. The expiration of enhanced federal subsidies from the Affordable Care Act (ACA) could lead to premium hikes that exceed 60% in some states, significantly impacting the affordability of healthcare. Additionally, economic pressures and rising medical expenses are compelling employers, including CBRE, to adjust benefits structures, potentially transferring more healthcare costs to employees. Consequently, employees should proactively review their health plans and consider strategies to mitigate rising expenses in the coming year. Click here to learn more

A recent study by  Vanguard  highlights a critical aspect in the management of IRA rollover accounts, which could lead to significant financial consequences for CBRE Group employees, potentially missing out on up to $130,000 in investments. This understanding comes from an analysis of the retirement system, which stipulates that IRAs should primarily allocate direct contributions and most cash inputs by default. While 401(k) plans offer investment options focused on defaults, such as target-date funds, IRAs take a less aggressive investment approach.


Vanguard's findings reveal a significant lack of awareness among IRA holders, including CBRE Group employees, about their real investment allocations. A staggering two-thirds of those surveyed were unable to correctly identify their investments in their IRAs, with only one-third acknowledging having made a deliberate choice to keep their funds in cash. This is problematic considering the historical performance of cash investments compared to equities and other financial instruments.

According to a longitudinal study tracking IRA rollovers since 2015,  Vanguard  discovered that 28% of these accounts remained entirely in cash seven years later. This static approach has led to a significant loss of potential profits.

Vanguard estimates that, on average, individuals under 55, including CBRE Group employees, who transfer their IRA investments from cash to a target-date fund could see their retirement assets increase by at least $130,000 by the age of 65. Given that the average retirement account amounts to about $88,000, an addition of $130,000 can significantly bolster retirement preparedness.


Moreover, Vanguard estimates that Americans collectively lose about $172 billion in potential investments each year due to common fund allocations in IRAs. This figure likely underestimates the overall impact as it only accounts for rollovers and not direct contributions, which are typically invested in cash by default.

This issue disproportionately impacts young investors, low-income workers, and women—groups already at a disadvantage in building substantial retirement reserves.

Additionally, Vanguard supports legislative changes regarding IRA default investment strategies following those of CBRE Group's 401(k) plans, which were reformed under the  Pension Protection Act of 2006 . This act allowed 401(k) plans to automatically invest contributions into default options such as benchmark funds, unless the investor decides otherwise. Implementing a similar framework for IRAs could greatly enhance the long-term financial security of many investors.

While legislative reform may offer a comprehensive solution, investment firms also play a crucial role in steering IRA investors toward more effective asset management strategies. Encouraging CBRE Group investors to regularly review and adjust their investment choices can significantly improve their retirement outcomes.

Addressing the inefficiencies of IRA investment strategies is not a complete solution to the retirement savings crisis, but it is an essential step towards reducing financial vulnerabilities, especially for those in the latter half of the socioeconomic spectrum. This strategic evolution can bring numerous benefits globally, enhancing financial stability for future CBRE Group retirees.

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A study conducted by the  Economic Policy Institute (2022)  underscores the crucial importance of diversification in retirement portfolios. According to the study, individuals approaching retirement can bolster their resilience to market volatility by incorporating a mix of stocks, bonds, and other assets, rather than relying solely on their traditional savings or cash equivalents. This varied approach not only reduces risks but also optimizes potential gains, crucial for those at the end of their wealth accumulation phase and looking to ensure their financial stability in retirement.

Keeping your IRA investments in cash is like anchoring a boat in calm waters while a favorable wind passes by. Just as the boat fails to harness the wind to reach new captivating destinations or swiftly return to port, keeping your IRA funds in liquid form means missing out on the tremendous growth opportunities offered by equities and target-date funds. Over time, just as the boat remains stationary, the value of cash savings can be eroded by inflation, preventing your retirement savings from realizing their full potential and impacting your financial freedom during your golden years. CBRE Group employees should heed this advice to maximize their retirement outcomes.

What is the 401(k) plan offered by CBRE Group?

The 401(k) plan at CBRE Group is a retirement savings plan that allows employees to save a portion of their salary before taxes are taken out.

How can employees of CBRE Group enroll in the 401(k) plan?

Employees of CBRE Group can enroll in the 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.

Does CBRE Group offer a matching contribution for the 401(k) plan?

Yes, CBRE Group offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for CBRE Group's 401(k) matching contributions?

The vesting schedule for CBRE Group's matching contributions typically follows a standard schedule, which can be reviewed in the employee handbook or benefits portal.

Can employees of CBRE Group take loans against their 401(k) savings?

Yes, CBRE Group allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan documents.

What investment options are available in CBRE Group's 401(k) plan?

CBRE Group offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Is there a minimum contribution requirement for the 401(k) plan at CBRE Group?

Yes, CBRE Group may have a minimum contribution requirement for employees wishing to participate in the 401(k) plan, which can be found in the plan documents.

How often can employees change their contribution amounts in CBRE Group's 401(k) plan?

Employees of CBRE Group can typically change their contribution amounts at any time, subject to the plan’s guidelines.

What happens to my 401(k) savings if I leave CBRE Group?

If you leave CBRE Group, you have several options for your 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the CBRE Group plan if allowed.

Are there any fees associated with CBRE Group's 401(k) plan?

Yes, there may be administrative or investment fees associated with CBRE Group's 401(k) plan, which are disclosed in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
CBRE Group announced a reduction of its workforce by approximately 5% as part of a restructuring plan aimed at optimizing operations and reducing costs. The company also implemented changes to its benefits package, including adjustments to retirement contributions and healthcare benefits.
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For more information you can reach the plan administrator for CBRE Group at 400 S. Hope St. Los Angeles, CA 90071; or by calling them at +1 213-613-3333.

*Please see disclaimer for more information

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