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Previously:

• In Part 1, I examined the dramatically improved participant outcomes that will result from a program of auto portability.
• In Part 2, I described how auto portability, by enhancing and extending automatic rollover programs, represents an enhanced standard of participant care.
• In Part 3, I presented evidence that the adoption of auto portability could lead to a reduction in plan expenses.
• In Part 4, I addressed how auto portability could enhance 401(k) participants’ financial wellness.

In part 5, my final installment of the series, I explain how auto portability can mitigate retirement-related cybersecurity risks.

• In Part 1, I examined the dramatically improved participant outcomes that will result from a program of auto portability.
• In Part 2, I described how auto portability, by enhancing and extending automatic rollover programs, represents an enhanced standard of participant care.
• In Part 3, I presented evidence that the adoption of auto portability could lead to a reduction in plan expenses. 

In Part 4, I address how auto portability could enhance 401(k) participants’ financial wellness.

• In Part 1, I examined the dramatically improved participant outcomes that will result from a program of auto portability.
• In Part 2, I described how auto portability, by enhancing and extending automatic rollover programs, represents an enhanced standard of participant care.

In Part 3, I present evidence that the adoption of auto portability could lead to a reduction in plan expenses.

In observance of National 401(k) Day, we’ve compiled three unique 401(k) “hacks” – simple but clever tips for managing your retirement savings more easily and efficiently.

With unemployment nearing historic lows, more career opportunity inevitably translates into greater job mobility. That means that more 401(k) participants will be changing jobs and will face important decisions on what to do with their retirement savings.

As Baby Boomers begin to retire in record numbers, they’re shifting their attention from saving for retirement to the process of decumulation, or converting their 401(k) savings into retirement income.

For many Boomers, their current-employer’s 401(k) plan wants to come to the rescue, offering them a dizzying array of retirement income solutions. Unfortunately, as these solutions begin to encounter reality, Boomers are finding that one simple, yet critical element is missing that prevents them from working as intended – the consolidation of their retirement savings.

Plan sponsors intuitively know that an explosion of small-balance 401(k) accounts held by terminated participants can create problems.  Unfortunately, few sponsors are clear on the factors that give rise to small accounts, and fewer still understand how they can utilize consolidation programs to solve the problem.

On May 22^nd, at a Women’s Institute for a Secure Retirement (WISER) roundtable addressing strategies, choices and decisions for women’s retirement income, important new data was presented that highlights the challenges faced by women in preserving their 401(k) savings when changing jobs – particularly for women with balances less than $5,000.

When Ben Franklin coined the adage “an ounce of prevention is worth a pound of cure” he wasn’t considering the problem of missing participants, but 401(k) plan sponsors would be wise to heed Ben’s sage advice.  

Today, plan sponsors face an explosion of missing participants, driven by the ongoing adoption of auto enrollment and increasing workforce mobility.  Their problems are further compounded by the administrative burden required to locate them, combined with a regulatory minefield that offers little guidance and is prone to taking inconsistent enforcement actions.  

Over the past six years, there’s been a steady drumbeat pointing the way to increased portability and in-plan consolidation (“roll-ins”) as the next big strategic focus for defined contribution plans.   

While this path may soon lead to the widespread adoption of auto portability, a process that automatically rolls in small balances into a participant's new-employer plan, many plan sponsors are already embracing programs that support roll-ins for all participants, regardless of balance size.