May 3, 2026
Retirement money is accrued over the course of a career. It's that special account that can't be touched and is there to financially support the golden years.
A retirement account is the type of account that's not necessarily checked as frequently as checking, savings or more volatile investments. While not set-and-forget, retirement funds are a long-term investment, so there's less need to know a current account balance.
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But what if the next time you go to check your retirement account you see $10,000 instead of $185,000? It's a situation no one should ever find themselves in, especially those nearing retirement, when time is limited.
Let's use the example of a couple, Jerry and Samantha, who reached out to MarketWatch for answers about their situation. (1) They're in their early 50s, own their home and have two kids who are in college. They're both still working but have set themselves a goal to retire in the next seven to 10 years.
They hired a financial advisor two decades ago who was a family recommendation. To their horror, however, they discovered that their retirement account had no advisors attached to it. The account is with Fidelity, who is the custodian, and the couple thought it was being managed by their family's financial advisor.
Can they recover their money, or will they be working well into their 60s to recoup funds?
Determining what happened to your retirement savings
Just because there wasn't an advisor on the account doesn't mean it was untouched. The couple needs to rule out that there wasn't a third person or party in their account.
Losing $175,000 in a matter of months doesn't necessarily mean the account was compromised. It might have been bad investments, not necessarily fraud.
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Nonetheless, the couple needs to reach out to the custodian (Fidelity) fraud department in case their funds were indeed accessed, as well as immediately check and lock down all other financial accounts. They should also request the past four to six quarterly statements and go through each one carefully for clues. Asking Fidelity for every trade and fee, and then reviewing them for further context, would also be wise.
Next, they should look at what investments were in the account. If they were speculative and depreciated during that period of time since they last checked, it could be possible that the losses were simply bad investment choices. Was there a sudden drop, or did it steadily track downward over the months?
This matters, because if it happened over months and the couple was later told that the account had no advisor attached, they should escalate it to Fidelity's management and compliance. Jerry and Samantha would have grounds to request a full explanation of their account holdings during that time and the specific reason for the $175K loss.
Once they have all the information, they might consider filing a formal complaint to try to recover the funds — this comes down to how the account was set up and if they can point to a supervisory failure.
Firms are required to complete Know Your Client (KYC) and suitability updates to align an accountholder's financial situation with investment objectives.
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Can lost retirement savings be recovered?
If fraud is discovered, the couple can report the situation and file a claim with the Financial Industry Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC), because investment accounts are usually insured by the SIPC.
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If Jerry and Samantha can prove a supervisory or suitability failure by the firm, they could attempt to cover the losses.
However, no matter what occurred, the couple should prepare for the possibility of not getting their money back. Sadly, they might need to plan to work longer than expected to recoup their retirement or make lifestyle adjustments now, in the lead-up to leaving the workforce.
They should take full control of all their accounts, check them frequently and hire a Certified Financial Planner (CFP) to help get them back on track. When hiring a CFP, it's important to know if they're fiduciary and what their qualifications are, as well as their investment philosophy, fee structure, and typical clients.
Managing and growing life savings must be treated with special care.
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MarketWatch (1)
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Amanda Smith is an Australian freelance journalist and writer based in the New York City area who reports on culture/society, technology, and health.
