Consolidation Corner Blog
Consolidation Corner is the Retirement Clearinghouse (RCH) blog, and features the latest articles and bylines from our executives, addressing important retirement savings portability topics.
“A lie can travel halfway around the world while the truth is still putting on its shoes” is a quote often attributed to Mark Twain. The same is true of myths about saving for retirement, and retirement services professionals should take it to heart as we begin 2017.
Beginning today, and in the coming weeks ahead, Retirement Clearinghouse will be rolling out our new corporate logo, as part of the ongoing evolution of our retirement savings portability services.
In his latest article in MarketWatch, posted on New Year’s Eve, RCH President, CEO and RetireMentor Spencer Williams counsels those who switched jobs in 2016 to make their New Year’s resolutions to roll-in all of their retirement savings accounts – not just the account in their most recent prior-employer plan – into their new-employer plan.
Under-participation by minorities in America’s 401(k) system represents a significant economic disparity that requires creative, private-sector solutions.
Auto portability – an emerging plan feature that automatically moves small balance accounts forward when participants change jobs – could play a critical role in helping to bridge the participation gap.
For more than a year now, we have been working with the research team at the Employee Benefit Research Institute (EBRI), Dr. Ricki Ingalls of Texas State University, and Boston Research Technologies to develop the Auto Portability Simulation (APS). The APS is a robust, quantitatively-based simulation that measures the size, characteristics and behaviors of America’s increasingly mobile workforce. The key findings from that work demonstrate the potential to dramatically reduce retirement plan cash-outs by identifying the long-term, systemic benefits of routine and standardized account consolidation at the time of a participant’s job-change—a technology-based innovation called Auto Portability.
As 2016 draws to a close, most observers will reflect upon the events that have dominated retirement industry news coverage: the Fiduciary Rule, the 10-year anniversary of the Pension Protection Act, and the Presidential election. These events will clearly shape plan sponsors’ activities and priorities for the New Year.
In his latest article in MarketWatch, RetireMentor and RCH CEO Spencer Williams gets us into the festive, holiday spirit by showcasing the “miracle” of compound interest. Compound interest is particularly relevant to retirement savers, whose nest eggs will incubate over a career.
The recent U.S. Presidential election brought renewed focus upon large infrastructure projects: massive, capital-intensive efforts required to rebuild America’s roads, bridges, railways and airports. Desperately needed, these projects could cost taxpayers hundreds of billions, perhaps even trillions of dollars.