401(k) cash out leakage blog posts


Oct
05
2016

How You Should Observe ‘National Save for Retirement Week’

In his most recent article in MarketWatch, RCH’s Spencer Williams notes the upcoming ‘National Save for Retirement Week’ event, and employs some clever word-association that has readers re-thinking the meaning of the word “save.”

Sep
27
2016

Five Misconceptions About 401(k) Leakage

This video presentation is designed to provide qualified retirement plan sponsors with an understanding of the facts and popular misconceptions surrounding the topic of 401(k) plan leakage.

Sep
07
2016

Why retirement portability should become employers' next big focus

Time Sensitive! Open Immediately! A significant majority (65%) of participants will make their distribution decision within the first 365 days of their termination from their former employer.

Sep
07
2016

Making Your Day, Re-Visited: When Retirement Savers' Luck Runs Out

In his most recent article in MarketWatch, RCH's Spencer Williams reprises last year's 7/10/15 article where he channeled Clint Eastwood's iconic movie hero "Dirty Harry" Callahan.

Aug
09
2016

Why Small Balance Cash Outs Are Falling Through the Cracks

According to the recently released 2016 Willis Towers Watson U.S. Retirement Governance Survey, a major trend in retirement plan governance is the growing concern employers have for employees' retirement benefit adequacy and financial well-being.

Jul
01
2016

When it Comes to Saving for Retirement, Millennials Can Learn from Baby Boomers' Mistakes

In his 6/30/16 MarketWatch article, RCH President and CEO Spencer Williams suggests an inter-generational dialogue on the pitfalls to avoid when saving for retirement.

Jun
21
2016

Calls for Portability Solutions to Curb Cash Out Leakage Growing Louder

Cash out leakage, the premature withdrawal of retirement savings for non-retirement expenses, is a persistent problem in the retirement industry, and growing more pervasive as employee mobility increases.

Jun
09
2016

Fast & Slow Leakage Produce a Flood of Outflows

First, let's review the definition of "leakage." If we think of total 401(k) savings as a bucket of water, "leakage" refers to those retirement savings that, like water in a leaky bucket, are withdrawn from the U.S. retirement system every year. There are three holes in the bucket: cash-outs at the point of job change, hardship withdrawals, and loan defaults. According to the U.S. Government Accountability Office, one of these holes is much bigger than the other two combined nearly 89% of all leakage is attributed to cash-outs that occur when a participant changes jobs. Hardship withdrawals and loan defaults together account for the remaining 11%.

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