Identity Protection

How to Protect Your Retirement Accounts

Published January 20, 2021

Depending on your life stage, retirement may seem decades away, but that doesn’t mean you should postpone your financial planning. According to Investopedia, nearly 60% of employees claim that their top financial priority is planning for retirement. Funneling money into your retirement account is crucial, especially now that pension plans are fizzling out as a benefit of the modern day workforce.

Now that you’re saving for retirement, you want to ensure your assets are protected from fraudulent activity. Unlike standard checking and savings accounts, retirement accounts are not monitored as closely by the investment company, so it is your responsibility to stay vigilant and know your identity theft risk. Here are a few tips on how to protect your post-professional savings:

Stay up to date on your accounts. Most identity theft professionals suggest doing this weekly. You’re provided peace of mind just knowing your money is still there and can act swiftly is an unauthorized transaction has taken place over the previous seven days.

Do not check your accounts over a public Wi-Fi network. It is okay to connect to public networks, so long as you take the appropriate precautions. Accessing your retirement account over an unsecure network could potentially invite hackers to compromise your data and steal or corrupt your assets.

Consider multiple institutions. Using one bank for your checking account, savings account, mutual funds, and retirement savings is certainly convenient. Having all of your money tied up in place isn’t the smartest move, however. Before opening a retirement account, consider investing in an institution separate from your everyday bank. Tracking down multiple login combinations and multiple banks is more work than hacker will likely want to do.

Check for an online fraud policy. While recovery of suspicious charges on a credit card are easy to reimburse, stolen money from a retirement account isn’t nearly as simple to recover. In fact, many investment companies don’t have a strong recovery statement in place, or if they do, there are many pre-qualifications you must go through to be eligible. Dig deep into online fraud policies at your desired institution to ensure you are getting maximum protection on your account.