Spencer Williams
CEOSpencer Williams is CEO of Portability Services Network and Retirement Clearinghouse, a portability solutions provider.
Spencer Williams is CEO of Portability Services Network and Retirement Clearinghouse, a portability solutions provider.
Roughly $1.6 trillion in savings would be preserved in the U.S. retirement system over 40 years if auto portability were adopted nationwide.
Sharp increases in 401(k) account withdrawals spell trouble for plan participants, sponsors and recordkeepers.
Authors of a recent study suggest educating employees about the consequences of premature withdrawals and allocating contributions to "sidecar" accounts.
Up to 63% of Black Americans and 57% of Latinos cash out accounts within a year of a job change.
Expanding auto portability to a larger population can significantly reduce leakage of retirement plan assets and help shore up savings.
If auto portability is broadly adopted across the U.S. over the course of 40 years, an additional estimated $1.5 trillion in savings will be preserved.
A more thoughtful approach to saving will help participants who rely on the defined contribution model stretch their dollars into life after work.
The Advancing Auto Portability Act of 2022 would encourage the widespread adoption of auto portability.
Harnessing auto portability ensures plan participants receive all their retirement savings, and can also reduce fiduciary liability for sponsors.
Tech solutions can help prevent plan participants who are quitting their jobs from forgetting about the 401(k) savings accounts they leave behind.