TRANSCRIPT:

Tom Hawkins: Welcome to the 23rd episode of the RCH Consolidation Corner Channel, where we provide audio content that explores key issues in the preservation and consolidation of retirement savings. In this episode, we look at some of 2025’s key developments in the realm of retirement savings portability. We hope you’ll find the audio enjoyable and informative.

NARRATOR: In today’s episode, we explore why 2025 marked a turning point for retirement savings portability. This year brought major developments that are reshaping how Americans preserve their retirement savings when changing jobs.

First, the surging adoption of auto portability. Auto portability is a plan feature that automatically transfers small retirement account balances—typically under $7,000—when participants change jobs. Delivered through the Portability Services Network, this innovation gained significant traction in 2025. The year began with 15,000 plans committed to auto portability. By September, that number had jumped to nearly 21,000—a 40% increase in just nine months. Leading recordkeepers reported impressive figures: Empower announced over 11,000 plans enrolled, while Fidelity revealed that 9,200 of its plans had adopted the feature, representing more than one-third of its corporate defined contribution plans.

Second, strong endorsements from top recordkeepers. Fidelity, Empower, and Vanguard publicly voiced their support for auto portability throughout the year. Vanguard highlighted its progress in plan sponsor adoption, Empower emphasized growing interest among large sponsors, and Fidelity showcased the feature in its regulatory roundup podcast. These statements underscore a growing consensus that auto portability benefits both sponsors and participants.

Third, reframing the issue of “forgotten accounts.” A widely circulated analysis claimed there are nearly 32 million forgotten 401(k) accounts holding $2 trillion. Industry experts pushed back, arguing that the real problem is lack of portability. Their solution? Broader application of auto portability—not just for small balances, but for all accounts—to reduce leakage and improve retirement outcomes.

Finally, widespread media coverage. Auto portability and the Portability Services Network received favorable attention from major outlets like the Wall Street Journal, USA Today, and Forbes, as well as respected industry sources such as Pensions & Investments, NAPA Net, 401k Specialist and PLANSPONSOR. This visibility is helping drive awareness and adoption across the retirement landscape.

Looking ahead to 2026, the trend is clear: portability—and especially auto portability—will play a central role in strengthening retirement security. While the future is never certain, the momentum built in 2025 suggests that the coming year will bring even greater progress.

Thank you for joining us. Here’s to a safe and prosperous New Year in 2026!

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