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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including RCH Auto Portability
In her 7/12/19 article, PLANSPONSOR's Rebecca Moore reports on the latest EBRI research to address legislative proposals that expand access to employer-sponsored retirement plans. Once again, the EBRI findings reveal the highly-beneficial, additive impact of auto portability, when considered in tandem with other policy initiatives. The EBRI analysis, which examined various scenarios involving the widespread adoption of auto-IRA programs, found that adding auto portability to the mix resulted in the youngest cohort (35-39) realizing a reduction in their retirement savings shortfall (RSS) of 27.1% under auto portability, vs. 17.3% without the auto portability feature.
Also featured in PlanAdviser.
Bankrate's Dana Dratch offers readers a list of 8 key things to know about their 401(k) accounts when changing jobs. While 401(k) accounts "are designed to be portable" Dratch acknowledges that "moving [a] 401(k) is more challenging" than most realize. Dratch provides a solid overview of participants' options, counsels them against cashing out, and cites Retirement Clearinghouse's 2017 research that indicated more than 30% will take this unfortunate action following a job change.
In his five-part series in 401k Specialist, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his first article, Hawkins addresses the fundamentals of cashout leakage -- defining it, clearing up common sources of confusion, and identifying why the problem continues to persist.
PLANSPONSOR's Rebecca Moore examines new research from EBRI that quantifies the beneficial impact of retirement savings portability, via rollovers to IRAs or to other DC plans. In EBRI's analysis, every age cohort realized significant increases in retirement income adequacy when their balances moved forward, highlighting the importance of keeping balances in the retirement system and avoiding cashout leakage. Tying EBRI's analysis to related regulatory initiatives, Moore noted Retirement Clearinghouse's pending, prohibited transaction exemption (PTE) for the use of their auto portability solution.
Also featured in PlanAdviser
In her 6/10/19 column in The Wall Street Journal, Bailey McCann examines pending regulation from the U.S. Department of Labor on the RCH Auto Portability program, designed to reduce leakage and "help workers bring their retirement accounts with them as they change jobs." McCann quotes RCH founder, President & CEO Spencer Williams, and credits RCH for "develop[ing] the platform that would do the automatic transfers." Also expressing their support are Matthew Drinkwater, Director of Retirement Research at the LIMRA Secure Retirement Institute, and Alicia Munnell, Director of the Center for Retirement Research at Boston College.
In an article published on the Women's Institute For A Secure Retirement's (WISER) blog, RCH guest author Tom Hawkins describes the ill effects women face when they prematurely cash out their 401(k) balances. Not only do these cashouts jeopardize a safe & secure retirement, Hawkins cites research showing they'll regret the choice, and this regret will build over time. Women should only consider cashing out when faced with a true financial emergency, says Hawkins, and auto portability should help facilitate consolidation of retirement savings for women, as the feature is adopted.
In the 5th installment of his five-part series featured in 401K Specialist on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability can mitigate retirement savings cybersecurity risks. Auto portability, writes Hawkins, employs the simple-but-powerful principle of consolidation to lower cyber-risk by 1) reducing the cyber-threat attack surface, 2) minimizing fraud-prone, small-balance retirement savings accounts and 3) securely moving retirement savings forward.
In her article offering tips to readers who face financial pressure from an unexpected layoff, the Detroit Free Press' Susan Tompor quotes RCH EVP Neal Ringquist and references RCH's National Retirement Savings Cash Out Clock (link), which projects that Americans will cash out $68 billion in 2019. Ringquist urges caution in tapping a 401(k) balance prematurely, advising against withdrawals except for a true financial emergency, stating "you can't borrow for retirement once you retire."