News

Vanguard: 42% of US Participants Are on Track to Maintain Lifestyle in Retirement

PLANSPONSOR's Emily Boyle reports on new research, released by Vanguard, which assesses the readiness of American workers for retirement. Fiona Grieg, global head of investor research and policy at Vanguard’s Investment Strategy Group, provides Boyle with highlights from the report, entitled “The Vanguard Retirement Outlook: Strong National Progress, Opportunities Ahead." Addressing DC plan design, Grieg notes that "having a recordkeeper that participates in the Portability Services Network can help reduce leakage. When an employee switches jobs, if their old and new jobs both participate, a retirement account balance less than $7,000 rolls over automatically into an active account with their new employer."

Also featured in PlanAdviser

Talking Points: Third Time No Charm in ‘Forgotten Account’ Fantasy

Retirement industry icon Nevin Adams takes to NAPA Net to write a critique of newly-released research which suggests that there are $2 trillion in 'forgotten' 401(k) accounts. In his piece, Adams systematically dismantles both the methodology and conclusions behind the report, while offering EBRI’s auto portability analysis and benefits as sensible research counter-points to the hyperbole surrounding the analysis of 'forgotten' accounts.

More Than $2T Sitting in 'Left-Behind' 401(k)s

Beagan Wilcox-Volz, writing in Ignites, examines new industry analysis projecting that $2 trillion is "left behind" in "forgotten" 401(k) accounts. In the article, Wilcox-Volz turns to Anqi Chen of the Center for Retirement Research at Boston College, who notes that "today there are solutions that make the process less cumbersome" -- citing increased plan sponsor adoption of auto portability via the Portability Services Network, adding that "[t]his growth is encouraging, and I think it will make workers' hard-earned retirement savings much more portable."

* Subscription required

How Big of a Problem Are Forgotten 401(k)s?

NAPA Net Content Writer and Reporter Paul Mulholland examines recent research released by Capitalize that identifies 31.9 million “forgotten” 401(k) accounts, totaling about $2.1 trillion, and finds the research less-than-persuasive. According to Mulholland, rather than being "forgotten" these accounts "serve as a proxy for a lack of efficient account portability." While the Capitalize research may grossly overstate the problem of "forgotten" accounts, Mulholland writes that "the growth in 'left behind' accounts is still an issue, and illustrates the inability the current system has to efficiently consolidate retirement accounts for participants."

Nearly 21,000 Plan Sponsors Have Adopted PSN Auto-Portability

PLANSPONSOR's Emily Boyle reports on the latest news from the Portability Services Network, the consortium of defined contribution plan recordkeepers who have championed auto portability. Boyles writes that "20,997 plan sponsors have elected to adopt automatic portability, as of September 30. The number reflects a 1,225-plan (6.2%) increase from the 19,772 plans reported as of June 30." Boyle's piece extensively quotes RCH EVP & Chief Revenue Officer Neal Ringquist, and also quotes Empower's Dave Gray from a prior interview.

Auto Portability: Meeting the Needs AND Wants of Participants

When American workers change jobs, the fate of their retirement savings is often left hanging in the balance – especially for those with accounts less than $7,000. But today, with the continuing adoption of auto portability via the Portability Services Network, the story is changing. Auto portability is now beginning to address the most pressing needs of small-balance participants: reducing cashout leakage, automating consolidation, and making the preservation of retirement savings the default, “easiest choice” – while also closely aligning with what participants want, as revealed in multiple, authoritative surveys.

Previously featured in RCH's Consolidation Corner

Regulatory Roundup: Auto Portability

In this video episode of Fidelity's Regulatory Roundup, show host Tre Hearn and guest Katie Hutchinson, VP, Defined Contribution Product Platforms, dive into Auto Portability -- the game-changing solution that helps workers by simplifying the rollover process of their retirement savings when switching jobs. Topics covered in the video include:

• 00:18 What happens when a worker changes jobs and doesn't rollover their retirement savings to their new employer?
• 01:03 Which workers does this affect most?
• 01:17 Does the SECURE 2.0 Act provide a solution for workers moving jobs?
• 01:42 The Portability Services Network and Auto Portability
• 03:00 How do employers benefit from joining the Portability Services Network?

DOL Reg Agenda Includes New ESG, Fiduciary Rules, SECURE 2.0 Guidance

Writing in NAPA Net, Content Writer & Reporter Paul Mulholland covers the publication by the Department of Labor (DOL) of their updated Spring 2025 regulatory agenda, with approximately 20 guidance projects under the Employee Benefits Security Administration (EBSA) that are either in the pre-, proposed, or final rule stage. Of those projects, Mulholland notes "[t]he agenda indicated that the DOL will finalize a rule on auto-portability by Jan. 2026. It did not indicate if it would build on the Biden administration’s proposal from Jan. 2024."

Also featured in ASPPA Net