Steve Holman

A common misconception among plan advisors is that auto portability poses a threat to their business. In reality, the opposite is true.

Auto portability strengthens advisors’ value by increasing plan assets and expanding opportunities for wealth management. That’s because plans that adopt auto portability steadily accumulate additional assets over time. As new employees join a plan, their small balances from prior employers also participating in auto portability are automatically rolled in, by default. This creates a consistent inflow of assets that would otherwise be lost.

Auto portability represents a fundamental evolution in how defined contribution systems operate. Delivered via the recordkeeper-led Portability Services Network (PSN)and powered by Retirement Clearinghouse (RCH) technology, it transforms inefficient, standalone automatic rollover processes into a standardized, automated, digital ecosystem that preserves small-balance retirement savings within the plan recordkeeping framework.

Today’s workforce is more mobile than ever – but their retirement savings shouldn’t be left behind.

Each time workers change jobs, they face an important decision: what to do with their retirement account. For many – especially those with smaller balances – this moment often leads to costly mistakes, including cashing out savings early, or winding up in a dead-end safe harbor IRA that charges excessive fees and is invested in low-yielding default investment funds.

Auto portability changes that.

Are you a plan sponsor and want some good reasons why you should adopt auto portability?

Here are seven: