Job-hopping is fun, but it can bring a sneaky problem: many Americans lose their hard-earned small retirement savings when they change jobs! Every time someone switches their workplace, they often leave behind or even withdraw small 401(k) balances. This quietly eats away at their long-term future funds. But wait, here comes a superhero – Fidelity Investments! They’ve launched an auto-rollover service that helps these tiny balances follow workers to their new jobs instead of disappearing or being cashed out. According to Fidelity's latest report, more than 9,200 of its 401(k) plans now use this auto-rollover system, a jump from about 6,000 plans just a year ago. This isn’t alone; the service is part of the Portability Services Network (PSN), a team effort by big names like Fidelity, Alight Solutions, Empower, TIAA, Vanguard, and the Retirement Clearinghouse. Together, they created a smart digital system to quickly and easily transfer 401(k), 401(a), 403(b), and 457 retirement funds when people change jobs. PSN has already enrolled over 21,000 plans, helping more than 5.6 million people keep their retirement money safe and growing. Why does this matter? Because many workers make a costly mistake – cashing out their small retirement accounts. Fidelity's vice president for defined contribution product platforms, Katie Hutchinson, says, "Our data shows that over 40% of job changers with small balances cash out their workplace retirement account when they change jobs." And the Women’s Institute for a Secure Retirement says even more young workers – over 41% in their 20s – do the same. Cashing out early can cost dearly. If you take money out of a tax-deferred retirement fund before age 59½, you face a 10% IRS penalty plus income tax. Plus, you lose years of growth from compounding interest – the magical force that grows your money! Often, small retirement balances left behind get rolled into low-interest IRAs, where most people forget about them. Data shows that after three years, over 75% of these funds remain untouched and lose value over time. Here’s how auto portability works: It charges a one-time $30 fee and works on balances under $7,000, as long as both the old and new employer’s plans participate. Imagine this: if you cash out ₹5,000 at age 30, after penalties and taxes, you might get around ₹3,500. But if you let that same money grow in a new employer’s plan at 5% annual interest until age 65, it could become a whopping ₹27,580! That’s the power of patience and smart saving. Craig Copeland from the Employee Benefit Research Institute says, "If a small account is moved to a new employer plan, the assets are much more likely to be invested for the long term, and the account would continue to be receiving contributions." He adds, "Someone is more likely to be engaged with an account, so not forgotten, and keeping the money together can provide real benefits to retirement savers." Confused about what happens to your 401(k) when switching jobs? It can stay with your old employer, move to an IRA, or be auto-rolled if plans allow. Many lose track of small accounts because they think these tiny amounts don't matter. But every rupee counts! Thanks to the new auto-rollover service, your small savings can stay in the game and grow big over time. So, before you switch jobs – think twice and protect your golden years’ funds!