Retirement Clearinghouse in the News

Find news articles referencing RCH and our services, including RCH Auto Portability


Apr
23
2020

To show participants you care, help them avoid 401(k) cash outs

As participants affected by the COVID-19 crisis consider whether or not to withdraw retirement savings under provisions of the CARES Act, RCH’s Spencer Williams offers plan sponsors constructive advice for engaging them. Writing in Employee Benefit News, Williams acknowledges the need for millions to have a “financial lifeline” but suggests that sponsors remind participants via email communications and digital content “that their retirement savings should be considered a last resort for meeting emergency expenses, especially during the present crisis.”

Also featured in Employee Benefit Adviser

Apr
20
2020

401k Specialist Magazine Features Auto Portability

Issue 2, 2020 of the 401k Specialist Magazine features an article by RCH's Tom Hawkins. In his piece "The New Age of 401(k) Portability", Hawkins identifies clear, across-the-board indications that America's defined contribution (DC) system is entering a "new age" of plan-to-plan portability. Portability, Hawkins contends, is the "missing ingredient" that, when added to 401(k) plans, will resolve the damaging disconnect between America's highly-mobile workforce and their immobile retirement savings.

Apr
13
2020

Factors to Consider Before Cashing Out a 401(k)

In her 4/13/20 article in US News & World Report "Factors to Consider Before Cashing Out a 401(k)", contributor Rachel Hartman advises readers to think carefully about the long-term repercussions of prematurely cashing out of a 401(k). Hartman quotes RCH's 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.

Apr
13
2020

CARES Act’s Provisions Are Well-Intentioned but Could Harm Retirement Readiness

Writing in PLANSPONSOR, RCH EVP Neal Ringquist urges plan sponsors to use their power to prevent participants from making huge mistakes during the COVID-19 crisis. Acknowledging that the financial effects of COVID-19 are real, and that emergency access to liquidity is absolutely necessary in financial emergencies, Ringquist argues that "short-term needs shouldn't eclipse long-term goals" and that retirement savings should only be used as a "last resort." Sadly, many participants will fall prey to temptation, and worse -- phony and misleading offers. Sponsors, writes Ringquist, can deploy "resources that educate participants on the damage cash-outs can inflict on their income in retirement." In closing, Ringquist reminds readers that, while the crisis will eventually pass, the "harm to retirement outcomes may be permanent if participants succumb to the temptation to make destructive decisions."

Mar
27
2020

Education Key to Preventing 401k Cashouts

In an interview with 401k Specialist's Danielle Andrus, RCH President & CEO Spencer Williams urges 401(k) savers to carefully consider the long-term consequences of cashing out. Acknowledging that, in the current pandemic-fueled economic crisis "folks need access to money" Williams encourages savers to withdraw 401(k) savings only if they're faced with a "real emergency" and if so, to withdraw only what's absolutely required. Education is key, says Williams, and can "have a profound influence on participants' decision making."

Mar
27
2020

All Those 401(k)s in the Time of Coronavirus

Responding to the Wall Street Journal's 3/20/20 article “The Emergency 401(k) Button” with a letter to the Editor, RCH President & CEO Spencer Williams urges 401(k) savers to exercise caution when considering whether or not to cash out their savings. A hasty decision could result in "the loss of years of compound interest and investment growth that won't be there for retirement" writes Williams, citing a hypothetical 30-year-old, who cashes out $5,000, but stands to lose $52,000 in retirement earnings. Borrowing now, says Williams, is easier than borrowing in retirement, and your "70-year-old self will thank you" for your restraint.

Mar
02
2020

How sponsors can help minorities save for retirement

In his latest byline in Employee Benefit News, RCH President & CEO Spencer Williams addresses the cashout leakage crisis, which disproportionately affects minorities, including African-Americans and Hispanics. Auto portability, says Williams, can make all the difference in solving the crisis, but requires that "sponsors themselves, as well as their recordkeepers, take the next step" and adopt the new plan feature. The adoption of auto portability, writes Williams, is completely consistent with a recent public statement released by the Business Roundtable, and endorsed by 181 CEOs of the nation's largest corporations.

Feb
28
2020

SECURE Act Impact: 3% Reduction in Retirement Deficit?

401kSpecialist Magazine's Managing Editor Brian Anderson reports on EBRI's 2/21/20 Issue Brief, which examines key provisions of the SECURE Act. In his article, Anderson notes that the overall reduction in the nation's Retirement Savings Shortfall (RSS) directly attributed to the legislation is 3%. However, when EBRI factors in auto portability, Anderson writes that "the overall reduction in retirement savings shortfalls is 10.0%" -- a significant increase over baseline.

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