TRANSCRIPT:

Tom Hawkins: Welcome to another edition of the RCH Consolidation Corner Channel, where we provide you with audio content that explores key issues in the preservation and consolidation of retirement savings. In this episode, we examine three retirement initiatives that could make significant contributions toward closing the nation’s wealth gap. We hope you’ll find the audio enjoyable and informative.

NARRATOR:
Millions of hard-working Americans -- especially those with lower incomes, women, and minorities -- still struggle to save enough for a secure retirement. Despite some progress, deep gaps in retirement savings remain, putting the nation’s most vulnerable groups at risk.

Now, there’s real hope for change. Thanks to a combination of technology and policy, three major initiatives -- Auto Portability, the Saver’s Match, and the new Trump Accounts -- are joining forces to bridge the retirement wealth gap.

Auto Portability, which is delivered by the Portability Services Network, makes moving retirement savings easier when people change jobs. Instead of old 401(k) balances getting cashed out or left behind, they are automatically rolled into the worker’s new retirement plan, keeping those savings safe and growing. Industry experts estimate that if this system is widely adopted, it could create $1.6 trillion in new retirement wealth for 175.6 million job-changers over the next 40 years. Minority workers, who are hit hardest by lost small balances, could especially benefit -- preserving $744 billion, with $216 billion potentially going to Black Americans.

The Saver’s Match, introduced by the SECURE 2.0 Act, gives lower- and middle-income Americans a 50% government match on the first $2,000 they contribute to retirement each year, starting in tax year 2027. This is a direct boost, not just a tax credit. Research by Morningstar estimates that $2.03 trillion could be added to long-term retirement wealth, with about 27 million people eligible for the match every year. For each saver, the average government contribution could be $634, making it much easier to grow their savings.

Trump Accounts, authorized in 2025 as part of the One Big Beautiful Bill legislation, gives every U.S. newborn from 2025 through 2028 a $1,000 government-funded retirement account. Managed in low-cost index funds and mostly locked up until retirement, these accounts ensure that all Americans -- no matter their family’s income -- get a jumpstart on saving for retirement. If these balances were retained until retirement, Retirement Clearinghouse estimates that this program could generate $799.5 billion in government-seeded retirement wealth for future generations.

Advances in financial technology make these programs practical and secure, allowing balances to move quickly and safely between retirement plans. But the job isn’t done with technology alone -- financial services and plan sponsors must take action by adopting these solutions, promoting their use, and making sure all eligible savers benefit.

The numbers tell a powerful story:

  • $1.6 trillion from Auto Portability
  • $2.03 trillion from the Saver’s Match
  • $799.5 billion from Trump Accounts

Each program targets those often left behind in the retirement system, especially small-balance savers most at risk of missing out. By seizing these opportunities, America can close the retirement wealth gap and ensure that everyone, regardless of background, can retire with dignity.

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