---
title: Account consolidation time-consuming, expensive for employees
description: "The Baby Boomer generation is once again drawing attention to an unmet need: a seamless way to consolidate their collection of retirement accounts into a single account, which is a necessary step to creating a sturdy retirement plan."
---

[RCH Consolidation Corner](https://blog.rch1.com/blog)

# [Account consolidation time-consuming, expensive for employees](https://blog.rch1.com/blog/account-consolidation-time-consuming-expensive-for-employees)

 Written by [Spencer Williams](https://blog.rch1.com/blog/author/spencer-williams) | March 31, 2016

As has happened so many times before, the Baby Boomer generation is once again drawing attention to an unmet need: a seamless way to consolidate their collection of retirement accounts into a single account, which is a necessary step to creating a sturdy retirement plan. Much has been written about how sponsors can improve both their plans’ overall health and their participants’ retirement outcomes by [embracing roll-ins](http://www.benefitnews.com/opinion/401-k-plan-sponsors-can-pay-it-forward-by-embracing-roll-ins); nonetheless, the account-consolidation process remains time-consuming and expensive for most participants.  
According to a 2015 Boston Research Technologies [study of mobile workforce behaviors](https://info.rch1.com/mobileworkforce), the roll-in process takes an average of five to six weeks from beginning to end. Some participants have to wait longer—13% responded that their roll-in took one to two months to complete, and 27% stated the process lasted over two months.

On average, participants expect they have to devote 19 hours of personal time to a roll-in, according to the study, which found that 20% of participants expect the process to require more than 19 hours of their time. The value of those hours is high—the study found that 36% of participants value personal time devoted to the roll-in process at between $100 and $500, while 8% valued this time at between $1,000 and $5,000 and 6% assigned it a value of over $5,000.

Not surprisingly, the study found that 32.8% of participants left their savings in their prior-employer plan when they changed jobs. Given the time (and money) they would have to devote to rolling their balances into their current-employer plans, stranding savings is the most cost-effective option for many participants.  

However, there is a simple fix to this dilemma—which presents sponsors with a great opportunity to demonstrate their value [as fiduciaries](http://www.benefitnews.com/opinion/how-to-make-mandatory-distributions-more-fiduciary-friendly) to participants, as well as strengthen their plans and the U.S. retirement system as a whole. All sponsors have to do is offer roll-in assistance to participants as a group benefit (a service provided by their plan).

The Boston Research Technologies study found that 62% of participants who undertook a roll-in received help from another party, and 46% of participants think of roll-in assistance as “an excellent benefit” compared to other benefits they receive (an additional 47% perceive it as “a good benefit” compared to others).

Even better news for sponsors is that most participants would pay virtually any price to take advantage of an employer-facilitated roll-in service. According to the study, 29% of participants are “very likely” (and an additional 34% are “somewhat likely”) to pay any fee for an employer-provided roll-in service in which nearly all the work is handled by a specialist. If a sponsor offered the service for free, 53% of participants would “very likely” utilize it. In fact, the study found that if the plan sponsor paid for a facilitated roll-in service, 85% of participants would roll their IRAs into their 401(k) accounts.

Participants who move their retirement savings to their new-employer plans when they change jobs, and in general stay invested in the U.S. retirement system [for their entire working lives](http://www.benefitnews.com/opinion/a-blueprint-for-lifetime-participation-in-401-k-plans), end up saving more for retirement than counterparts who cash out or leave accounts in prior-employer plans.

Enabling seamless portability, including auto portability for participants with account balances under $5,000, is a good start toward helping more participants reach the top tier of savers prepared for retirement. By simply offering roll-in assistance as a group benefit (or at no cost), sponsors can facilitate account consolidation and reduce cash-outs among a wider spectrum of participants—and, ultimately, significantly increase their plans’ average account balances. 

[View full post](https://blog.rch1.com/blog/account-consolidation-time-consuming-expensive-for-employees)

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