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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including RCH Auto Portability
This Automatic 401(k) Rollover Legislation Could Protect Your Nest Egg And Help You Find Lost Retirement Money
Personal finance expert Brian J. O'Connor, writing in SmartAsset, examines new 401(k) rollover legislation -- the Advancing Auto-Portability Act of 2022 (H.R. 9252) -- introduced Oct. 28, 2022 by Rep. Brad Schneider (D-Illinois) – that "would create incentives for plan managers to automatically move the 401(k) account of workers changing jobs from the former employer’s plan to the new employer’s plan." O'Connor goes inside the legislation, notes its companion legislation in the Senate, and links the bills to recent actions by "Fidelity Investments, Vanguard Group and Alight Solutions – three of the largest 401(k) administrators – to create Portability Services Network, a consortium working with Retirement Clearinghouse to reconnect workers with old 401(k)s."
401k Specialist reporter Amanda Umpierrez reviews breaking research from Morningstar (Going Global: An Evaluation of Retirement Systems Around the World), which compares and contrasts various aspects of retirement savings systems around the world. Umpierrez writes: "[r]egarding auto-portability, each country varied in handling inactive vs. active accounts and employee movement. In Sweden, the U.S. and the U.K., employees must be proactive in changing and moving their accounts themselves."
Writing in Employee Benefit News, RCH Founder, President & CEO Spencer Williams examines the implications of research from Boston College's Center for Retirement Research (CRR). The CRR study found that the youngest Baby Boomers, with less access to defined benefit (DB) plans than their predecessors, are drawing down their 401(k)-based retirement savings at much faster rates, with many poised to run out of retirement savings by age 85. These findings underscore the need to preserve more 401(k) savings for younger generations, and according to Williams, the best way to do that is "to consolidate 401(k) savings accounts.....and to avoid making any premature cash-outs." Sponsors, writes Williams, "can....help participants save more for retirement, so they don’t outlive their savings, by adopting auto portability."
The Daily Wire's Ben Zeisloft examines Fidelity Investments' 3rd quarter retirement research release, which finds that average retirement savings declined for the third consecutive quarter amid a volatile stock market and pervasive economic pressures. The piece goes on to quote Fidelity Workplace Investing President Kevin Barry, who draws attention to auto portability, stating that the new feature “can play a crucial role in increasing retirement security for these Americans by automating the movement of an inactive retirement account seamlessly into the active account of a new employer’s plan, potentially preserving trillions of dollars in future savings.”
PLANSPONSOR's Alex Ortolani reports on Fidelity's press release featuring their Q3 2022 retirement analysis, and includes quotes from Kevin Barry, president of Workplace Investing at Fidelity Investments. Ortolani writes: "Fidelity’s Barry also spoke in the release to the importance of retirement savers not leaving behind savings plans when they change jobs. Just last month, the Boston-based firm joined with Vanguard and Alight to create a consortium to tackle the issue of 'cash-out leakage' from participants leaving behind small retirement accounts" and quotes Barry as stating that “[a]uto-portability can play a crucial role in increasing retirement security for these Americans."
Fidelity® Q3 2022 Retirement Analysis: Despite Continued Volatility, Retirement Fundamentals Remain Sound
In a press release where Fidelity Investments provides their 3rd quarter 2022 retirement analysis, Kevin Barry, president of Workplace Investing at Fidelity Investments found the opportunity to address the need to stem 401(k) cashout leakage via auto portability. In the release, Barry states: "Auto-portability can play a crucial role in increasing retirement security for these Americans by automating the movement of an inactive retirement account seamlessly into the active account of a new employer’s plan, potentially preserving trillions of dollars in future savings.”
BenefitsPRO's Kristen Beckman examines a "new era of 'employee centric' retirement benefits" where "workers now want a plan that follows them from job to job." While Beckman's article mostly focuses on a new, non-401(k) plan that one vendor is promoting, it acknowledges that "other organizations are targeting portability as well" -- citing "a new partnership between 401(k) administrators Fidelity Investments, Vanguard, and Alight Solutions, which represent approximately 43.8 million workers across more than 48,000 employer-sponsored retirement plans" and "will utilize Retirement Clearinghouse (RCH), a service that provides account portability for retirement plans when workers change jobs."
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Yahoo Finance adds itself to the list of media outlets drawing attention to Fidelity Investments Q3 research, which noted that, despite continued volatility, retirement fundamentals remain sound. In that release, Fidelity's Kevin Barry praised auto portability, noting that the feature holds promise for addressing the needs of "those millions of workers who change jobs and leave behind low retirement balances" while adding that "auto portability can play a crucial role in increasing retirement security for these Americans."