Thomas Hawkins
As Retirement Clearinghouse's Senior Vice President of Marketing & Research, Tom Hawkins oversees RCH's marketing and research initiatives, including development of original content, RCH's internet presence, digital marketing and industry research, and is a Certified Blockchain Expert.
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.
401(k) Cashout Leakage: A Reality, Not a “Narrative”
I write a lot about 401(k) cashout leakage, and I can assure you that counts for nothing around my dinner table or at cocktail parties. The topic, though, is a serious one, adversely affecting the retirement prospects of millions of Americans.
A Critical Time to Protect the Vulnerable
The COVID-19 crisis has taught many painful lessons – but perhaps none more important than the need to protect those who are most vulnerable to the pandemic’s ill effects.
Let’s Extend the Spirit of the CARES Act to Automatic Rollover IRAs
America is a fundamentally caring country, as reflected in the collective actions of its individuals, businesses and policymakers. In the midst of the COVID-19 crisis, no policy reflects this caring spirit more than the aptly-named CARES Act, which, among other things, temporarily allows retirement savers hard-hit by the COVID-19 crisis to tap their qualified retirement savings while avoiding the punitive, 10% early-withdrawal penalty.
How Does Auto Portability Work? Watch the Video.
Looking for a quick primer on how auto portability works? Watch the video below, which walks you through the four-step process, including:
1. Worker changes jobs
2. Locate new worker's account
3. Match data
4. Savings follow worker
Video: Is Auto Portability the Next 401(k) ‘ESG’ Initiative?
Three recent developments indicate that the retirement industry is waking up to the need to address 401(k) cashout leakage, and importantly – from within the framework of corporate social responsibility.
How Socially Responsible Corporations Will Solve the 401(k) Cashout Crisis
Every year a silent, slow-motion train wreck occurs in America’s 401(k) system, when millions of job-changing workers prematurely cash out billions of dollars in retirement savings, a phenomenon known in retirement industry lingo as “cashout leakage."
The New Age of DC Plan Portability
A recent survey of defined contribution (DC) plan sponsors found that interest in retaining assets for retirement is on the rise. That finding, paired with certain provisions of the SECURE Act of 2019, suggests that DC plans are on a path to becoming “decumulation vehicles” for American retirees. While these developments are encouraging, persistently high levels of cashout leakage, increasing missing participants and other factors produce understandable pessimism regarding the future of DC plans.
The Auto Portability Imperative
The Most Promising Policies to Reduce 401(k) Cashout Leakage
Cashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement. Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it. The fourth of a five-part series, this article addresses policies with the most promise to reduce the 401(k) cashout leakage problem.The Magnitude of the 401(k) Cashout Leakage Problem
Cashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement. Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it. The third of a five-part series, this article addresses the magnitude of the 401(k) cashout leakage problem.