--- title: Retirement Savings Portability – An Idea Whose Time Has (Finally) Come description: "Writing in RCH’s Consolidation Corner, Tom Hawkins takes stock of five recent, broad-based developments that, taken together, make a compelling case that full retirement savings portability is getting closer to becoming a reality. Key developments Hawkins describes include: 1) auto portability and the rise of the Portability Services Network, 2) key government retirement savings initiatives, 3) potential provisions of SECURE 3.0, 4) an increased focus on “forgotten” accounts and 5) expanding the portability of Roth balances." image: https://blog.rch1.com/hubfs/RSP%20Idea%20Whose%20Time%20Has%20Come.png --- [![Retirement Clearinghouse Logo](https://blog.rch1.com/hs-fs/hubfs/raw_assets/public/Retirement_Clearinghouse_May2022/images/logo.png?width=1000&height=648&name=logo.png "Retirement Clearinghouse Logo")](https://rch1.com/) [Privacy Policy](https://securities.rch1.com/common/PrivacyStatement.pdf) [Sponsors/Service Providers](https://rch1.com/plan-sponsors) [Individuals](https://rch1.com/individuals) [Login](https://rch1.com/#) - [Home](https://rch1.com/home-page) - [Individuals](https://rch1.com/individuals) - [Individuals Home](https://rch1.com/individuals/individuals-home) - [Who is RCH?](https://rch1.com/individuals/who-is-rch) - 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The result is a fragmented, “leaky” system – one that allows trillions of dollars in retirement savings to slip away through cashouts, inefficiencies, and left-behind accounts.  That’s all changing, and quickly. Today, a convergence of industry innovation, public policy momentum, and technological advancement is transforming the old paradigm and accelerating the move to full retirement savings portability – a new reality that will materially improve retirement outcomes for millions of American workers. **The Leakage Problem – and Why It Matters** The U.S. defined contribution system has long been plagued by systemic friction. Each time a worker changes jobs, they face two easy options – cashing assets out or leaving them behind, and a difficult one – moving them forward. Predictably, their decisions are driven by convenience and sometimes, the [prospect of “sudden money.”](https://rch1.com/blog/sudden-money-and-preserving-401k-savings-dont-mix) The consequences are devastating. Industry estimates reveal that [over $90 billion in defined contribution assets are cashed out annually](https://www.ebri.org/publications/research-publications/issue-briefs/content/the-impact-of-auto-portability-on-preserving-retirement-savings-currently-lost-to-401(k)-cashout-leakage) when workers switch jobs, undermining long-term asset accumulation and reducing retirement readiness. Portability – the ability to seamlessly move savings with the worker – addresses the cashout leakage problem directly, and is [supported by hard, empirical data](https://rch1.com/blog/proof-positive-retirement-savings-portability-works). **Broad-Based Developments Driving Portability** Today, retirement savings portability is gaining unprecedented traction, as evidenced by the following, broad-based developments. **1 - Auto Portability and the Rise of the Portability Services Network** At the center of this transformation is [auto portability](https://psn1.com/learning-center/about-auto-portability), operationalized through the [Portability Services Network (PSN)](https://psn1.com/). This industry-led utility, dedicated to auto portability’s widespread adoption, represents one of the most significant structural innovations in the defined contribution system in decades. PSN brings together [leading recordkeepers](https://psn1.com/auto-portability/regulatory-information/participating-recordkeepers) who collectively represent approximately 63% of defined contribution participants and represent roughly 82 million employees across more than 185,000 plans. [Auto portability’s adoption has accelerated rapidly](https://rch1.com/blog/2025-a-breakthrough-year-for-portability), with more than 21,000 plan sponsors adopting auto portability, including nearly 7 million participants. Moreover, [larger plans – traditionally cautious adopters – are now embracing auto portability](https://rch1.com/blog/larger-401k-plans-embrace-auto-portability-as-due-diligence-drives-confidence) in meaningful numbers, signaling a critical inflection point in mainstream acceptance. **2 – Government Initiatives That Will Accelerate Portability’s Momentum** While private-sector innovation has laid the foundation, recent government initiatives are adding powerful tailwinds. The [Saver’s Match program](https://rch1.com/savers-match), set to go live in 2028 for the 2027 tax year, represents a fundamental shift in retirement incentives. Instead of a tax credit, eligible workers will receive a direct federal matching contribution – up to $1,000 – deposited into their retirement accounts. This change has the potential to expand participation and boost savings, particularly among low- and moderate-income workers. However, the operational challenge is immense. Delivering millions of matching contributions annually requires a system capable of identifying, routing, and consolidating funds across a fragmented landscape. A [recent Retirement Clearinghouse (RCH) simulation](https://rch1.com/blog/modeling-the-future-of-the-savers-match-program) modeled more than 700 million matching events over a ten-year period and reached a clear conclusion: the complex program can succeed at national scale if supported by an automated, [clearinghouse-based portability infrastructure](https://rch1.com/blog/building-out-the-clearinghouse-our-retirement-system-demands). Without such an infrastructure, the intended benefit of the program would be sub-optimized, further driving the leakage problem in the retirement industry. Similarly, the [April 2026 executive order establishing TrumpIRA.gov](https://www.whitehouse.gov/presidential-actions/2026/04/promoting-retirement-savings-access-for-american-workers-by-establishing-trumpira-gov/) underscores the federal government’s commitment to expanding access to retirement savings. By creating a centralized platform for workers without employer-sponsored plans – the initiative must eventually rely on efficient, portable account structures to function effectively. **3 - The Potential Provisions of “SECURE 3.0”** The federal legislative trajectory is likely to further support the trend to portability. Building on the foundation of the SECURE Act and SECURE 2.0, policymakers are already exploring a [“SECURE 3.0” framework](https://www.psca.org/news/psca-news/2026/4/brainstorming-secure-3.0) that emphasizes expanded access, increased participation, increased portability and simplified plan operations. Among the anticipated provisions are [streamlined rollover processes](https://www.barrasso.senate.gov/wp-content/uploads/2025/12/RetirementRolloverFlexibilityAct.pdf), enhanced data sharing, and improved mechanisms for account consolidation – all of which directly support portability. **4 – Increased Focus on “Forgotten Accounts”** In recent years, there has been an [increased focus on the growing volume of left-behind accounts](https://rch1.com/blog/forgotten-accounts-forget-hyperbole-heres-a-solution). Auto portability represents an important step to solving the problem. By automatically transferring small balances from prior plans into active accounts – without requiring participant action – auto portability reduces both cashout leakage and the accumulation of stranded accounts. Meanwhile, in March 2025, RCH released a landmark whitepaper – [*Building Out Clearinghouse Services for the U.S. Retirement System: A Blueprint for a Digital Infrastructure*](https://info.rch1.com/building-out-clearinghouse-services)*,* that includes a proposal for a Digital Rollover Network, which would extend consent-based portability to all participants, all balances. A significant reduction in left-behind accounts will fundamentally reshape the retirement landscape. Instead of millions of disconnected accounts, participants will increasingly hold consolidated balances that are easier to manage, easier to track, and better aligned with long-term [retirement income strategies](https://rch1.com/blog/the-missing-piece-in-retirement-income-consolidation). **5 - Expanding the Portability of Roth Balances** Looking ahead, [legislative proposals that would allow the roll-in of Roth balances](https://www.barrasso.senate.gov/wp-content/uploads/2025/12/RetirementRolloverFlexibilityAct.pdf) into defined contribution plans would further enhance portability. Roth assets represent a significant and growing share of retirement savings, and enabling their seamless movement would unlock additional consolidation benefits and improve outcomes for participants. **The Time Has Come** The movement toward full retirement savings portability is happening – driven by coordinated industry action, reinforced by public policy, and enabled by technology. Auto portability and the Portability Services Network was the first step towards creating the portability infrastructure. Government initiatives like the Saver’s Match and Trump Accounts will expand the portability infrastructure’s footprint. Legislative efforts are reducing friction, and growing awareness of leakage and forgotten accounts will sharpen the focus on outcomes. Through expanded portability, retirement savings will increasingly follow the worker, automatically and seamlessly. When that vision is fully realized, the impact will be profound – billions of dollars preserved, fewer accounts lost or abandoned, and a stronger foundation for retirement security will exist across the American workforce. 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