Auto Portability's Foundational Research
Auto portability is supported by a broad base of empirical research that clearly demonstrates the problems facing American workers (job-changing, systemic friction and 401k cashout leakage) as well as the solution: moving retirement savings forward when participants change jobs.
The GAO's 2014 report to Congress examined “forced transfers” and inactive accounts, concluding that greater protections are required. The report cited a “clearinghouse” as a means of achieving a “money follows the participant” objective.
The 2013 Vanguard study "How America Saves 2013" provided an important view into the cashout behaviors of a large portion of America's 401(k) savers and helps form the foundation of research that supports the need for retirement savings portability, and for auto portability in particular.
A Boston Research Group case study validates the RCH business model, which delivers portability and consolidation, while reducing cash outs and leakage.
A Boston Research Group study validates that a 50% reduction in cashout leakage could be achieved by implementing a program of retirement savings portability.
2012 EBRI research indicates that a 50% reduction in cashout leakage could result in an incremental $1.3 trillion in retirement savings, over 10 years.
A study of 401(k) savings disparities across racial and ethnic groups, clearly indicating that minorities are disproportionately impacted by cashout leakage.