05-06-2025
You've Worked Hard To Save In Your 401(k)—Now Learn How To Secure It
Protecting your retirement nest egg is a shared responsibility between you, your employer and your ... More retirement service provider.
Workplace retirement accounts have long been the largest source of retirement savings for many individuals and households. However, times of uncertainty and volatility serve as a reminder of the importance of ensuring proper safeguards are in place to protect your assets and your identity. Ultimately, protecting your retirement nest egg is a shared responsibility between you, your employer and your retirement service provider.
For background, in 2021, the U.S. Department of Labor released cybersecurity guidance for retirement plan participants, sponsors and service providers. The guidance emphasized the importance of thorough due diligence when selecting vendors, incorporating cybersecurity provisions into contracts and clearly defining the role each party plays in protecting plan assets. These updates serve as a timely reminder that safeguarding retirement savings requires coordinated action across all levels of plan administration.
Your employer, and likely the sponsor of your retirement plan, has a fiduciary responsibility to act in your best interests. A plan sponsor's responsibility to safeguard plan assets and participants includes the following:
It's also important that you take steps to protect your assets and personal data from cyber fraud. DOL guidance for employees on 'Online Security Tips' includes the following:
In response to the very real cyber threats that exist, retirement service providers have been making changes to their policies. These can be minor, like requiring multi-factor authentication when logging into their website or mobile app, or more significant, like delaying certain transactions if you've recently changed your address. While some policies might be new or viewed as inconvenient, the purpose is to safeguard your retirement savings.
In the unlikely event your account is compromised and money is removed from your 401(k) or other workplace retirement plan without your authorization, several retirement providers offer 'cyber security guarantees.' While the details and specific features vary, if available, these programs can provide additional peace of mind that your retirement savings are secure. To learn more about what's in place for your retirement plan, check with your employer or reach out to your retirement service provider via the phone number on your account statement. In today's digital world, keeping your 401(k) secure requires constant attention, collaboration and vigilance from all parties involved.
