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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including RCH Auto Portability
IRIS features an article by RCH's Tom Hawkins in observance of 2018's National 401(k) Day, featuring three simple but clever "hacks" -- or tips for 401(k) participants to manage their retirement savings more easily and efficiently. The article suggests that participants consider 1) consolidating their retirement savings, 2) keeping their contact and beneficiary designation information current and 3) using cash as an alternative dollar cost-averaging strategy.
In her 9/5/18 article in US News & World Report "6 Factors to Consider Before Cashing Out a 401(k)" Rachel Hartman advises readers to consider the long-term repercussions of prematurely cashing out of a 401(k). Hartman quotes RCH EVP Spencer Pringle, who suggests that participants first think carefully about whether or not the need is for a true financial emergency. If it is, Pringle further suggests that participants identify the amount required to satisfy the emergency, keeping the remaining amount invested for retirement.
In his latest article in BenefitsPRO, RCH EVP Spencer Pringle offers job-changing 401(k) participants important tips on how to avoid becoming a 401(k) DIY “horror story.” Pringle examines three DIY scenarios for participants to avoid, including cashing out, stranding a 401(k) balance at a previous employer and finally, attempting a DIY roll-in. Auto portability, education and assistance, says Pringle, are keys to overcoming the traps.
PLANSPONSOR's Rebecca Moore examines recent analysis by Retirement Clearinghouse that looks at the twin problems of 401(k) missing participants and cashouts. The RCH analysis, based upon RCH's Auto Portability Simulation and Boston Research Technologies' March 2018 Missing Participant Survey, compares and contrasts the two problems from a systemic perspective, and offers auto portability as a strategic solution to minimize both. Moore's piece also references a previous article by RCH CEO Spencer Williams, and quotes RCH's Neal Ringquist and Tom Hawkins.
401kTV's Robyn Kurdek reviews an 8/10/18 Wall Street Journal article by Anne Tergesen, which focuses on rising levels of cashout leakage linked to the growing adoption of automatic enrollment provisions. Similar to the original article in the Journal, Kurdek also cites data from Retirement Clearinghouse, indicating that "slightly more than 60% of 401(k) participants with balances of less than $10,000 cash out their savings."
RISMedia's Liz Dominguez covers recent research by Alight Solutions LLC on the benefits and disadvantages of auto-enrollment, and considers how these issues could impact behaviors in the real estate market. Dominguez cites the RCH cashout figure of 60% for balances less than $10,000, recently featured in The Wall Street Journal.
As the 40th anniversary of legislation enabling the 401(k) draws near, RCH President & CEO Spencer Williams predicts that the next big advancement for the 401(k) will be the “seamless portability and consolidation” brought about by auto portability. The benefits that auto portability will deliver, estimated by EBRI to be as much as $1.5 trillion, could be “right around the corner” and will help millions of Americans achieve a financially secure retirement.
In his August 2018 article in 401k Specialist, RCH's Tom Hawkins reveals new research predicting 401(k) participant outcomes following separation for two balance segments – those above & below $15,000. Using logic developed in the Auto Portability Simulation to track & tally participant outcomes 8 years following separation, the results reveal a startling contrast between the two segments – with participants in the over-$15,000 segment experiencing far-superior outcomes to those in the under-$15,000 segment. To address the disparities, Hawkins advocates for a new “automatic” in the form of auto portability.