TRANSCRIPT:

Tom Hawkins: Hi, and welcome to 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 America’s defined contribution system. Today, we’ll be examining the substantial benefits that women can derive from auto portability. We hope you’ll find the audio enjoyable and informative.

NARRATOR: The retirement crisis in America hits women particularly hard. Women typically earn less than men, take more career breaks for caregiving, and generally live longer. These factors create a perfect storm that leaves many women financially vulnerable in their retirement years. Consider this: women's retirement account balances are roughly 30% smaller than men's. But here's where it gets interesting - this gap isn't just about earnings. A significant part of the problem lies in how retirement savings are managed when changing jobs. Women change jobs more frequently than men, often due to family responsibilities or seeking better opportunities. Each job change creates a critical decision point for retirement savings. Many choose to cash out their 401(k)s, facing penalties and losing future growth potential. Others leave their accounts behind, scattered across multiple former employers.

Auto portability presents a promising solution to this challenge. It's a system that automatically transfers small retirement accounts to a participant's new employer plan when they change jobs. This seemingly simple innovation could be a game-changer, especially for women. Think about it: no more paperwork hassles, no more losing track of old accounts, and most importantly, no more temptation to cash out under financial pressure. The system works quietly in the background, keeping retirement savings intact and growing. For women, particularly those with lower balances who are most at risk of cashing out, auto portability could mean the difference between financial security and struggle in retirement. The numbers tell the story - women could preserve up to $753 billion in retirement savings over a 40-year period through auto portability. This isn't just about individual benefit. When more women maintain healthy retirement savings, it strengthens families, communities, and our entire economy. The ripple effects of financial security extend far beyond personal bank accounts. The technology for auto portability exists today, and it's already being implemented by major retirement service providers. What we need now is broader adoption and awareness. Every employer who adds auto portability to their retirement plan takes a step toward closing the gender retirement gap. For women navigating their careers and planning for retirement, auto portability offers a vital safety net. It's an elegant solution to a complex problem - one that could help millions of women build the secure retirement they deserve.

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