A common retirement strategy can erode your IRA savings, Pew report finds

Workers quitting jobs and transferring assets from their previous 401(k) plans account for the majority of IRA investments.

An employee who has a 401(k) plan at work has the following options:

If their company permits it, keep their money in their former plan.

If there is a plan offered by their new job, transfer their existing 401(k) there.

Transfer it to an IRA.

Because they can easily keep track of all their retirement assets in one location and can select from a variety of investment possibilities, IRAs are popular among many people.

But a government monitor discovered in 2013 that marketing from financial companies also significantly favors IRAs.

Institutions direct employees toward IRAs without taking into account their unique situations.

While the Government Accountability Office discovered that employees might not be aware that they are being marketed a product.