News

Worried About Losing Your Old 401(k)s? ‘Portability’ Measures Can Help

Yahoo Finance's Mike Obel takes stock of portability measures that could remove roadblocks for Americans "to take along their retirement funds more easily throughout their careers." Obel cites both draft legislation in Congress, as well as Vanguard's 9/21/21 announcement of plans to work with Retirement Clearinghouse on auto portability, which is expected to launch in mid-2022.

Also featured in SmartAsset.com

Vanguard and RCH to offer ‘auto-portability’ service to plan participants

The Editorial Staff of the Retirement Income Journal reports on the 9/21/21 announcement by Vanguard that it will offer the RCH Auto Portability solution to its plan sponsor clients and their participants, targeting the mid-2022 timeframe. The article describes key elements of the announcement, and echoes remarks by RCH President & CEO Spencer Williams by stating that "[t]he deal with Vanguard marks a great leap forward."

How Small Cashouts Can Affect Future Retirement Income

NAPA Net's Ted Godbout reports on new research from Alight Solutions that examines the problem of small account cash outs, and its highly-detrimental effect on retirement income. Whereas 4 in 10 job-changers of all balances cash out, the numbers skyrocket for balances less than $5,000, and when compound interest is considered, the lost retirement income is surprising. Godbout notes that the study highlights new technology, referencing "the emergence of auto-portability programs, such as one offered by the Retirement Clearinghouse."

The impact of 401(k) cash-outs on retirement income

Alight Solutions has released updated research (The impact of small amount cash-outs on retirement income) that addresses the impact of small-balance 401(k) cashout leakage. For those with balances less than $1,000, the study finds that 80% cash out, and with balances between $1,000 and $5,000, nearly two-thirds cash out. The study also observes that "new and innovative ideas, such as auto portability, can help curb this leakage and preserve retirement assets."

Small retirement accounts, prone to cash-outs and getting lost, a growing problem

InvestmentNews correspondent Emile Hallez reports on a retirement study published on 9/21/21 by the Brookings Institution, examining the problem of small accounts. While the paper examined a myriad of potential policy solutions to the problem, it acknowledged "private-sector" efforts by Retirement Clearinghouse to implement auto portability. On the same day the Brookings' paper was released, Hallez also notes the announcement by Vanguard that it will offer RCH Auto Portability, the private sector solution, and joining Alight Solutions.

Vanguard, Retirement Clearinghouse to offer automated plan transfers

InvestmentNews reports that Vanguard has engaged Retirement Clearinghouse (RCH), to introduce auto portability for sponsor clients and their plan participants, and that the service is expected to launch in mid-2022. The piece also quotes John James, managing director and head of Vanguard’s institutional investor group.

Vanguard to Offer Auto-Portability Solution to 401(k) Plan Clients

PLANSPONSOR's Rebecca Moore reports on the news from Vanguard of their plans to introduce the RCH Auto Portability service for their 401(k) sponsor clients and their participants. Moore's article notes that "the RCH Auto Portability program automates the movement of an employee’s 401(k) savings account from their former employer’s plan into an active account with their current employer’s plan" and "can also help simplify plan administration and improve plan compliance by reducing the instances of abandoned accounts and uncashed checks."

Also featured in PlanAdviser

Vanguard to Launch Auto-Portability Service

Ignites' Ben Miller reports on the 9/21/21 announcement by Vanguard that it will introduce an auto portability service for 401(k) sponsor clients and their participants, and that the firm has engaged Retirement Clearinghouse, LLC (RCH) to provide plan sponsors with the new portability solution.

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