Why is Auto Portability Needed?
Five Key Reasons Why Auto Portability is Needed
Auto portability dramatically reduces cashout leakage for small-balance retirement savers. Cashout leakage threatens all Americans, but disproportionately affects minorities, lower-income and younger segments of the population, which have historically under-saved and under-served by the defined contribution system. Auto portability changes these essential dynamics, preserving more retirement savings for those who need them most.
Below are five key reasons why auto portability is needed:
1. Cash Outs Threaten All Americans' Retirement Security
2. Cash Outs Disproportionately Affect Minorities, Lower-Income and Younger Age Segments
3. Safe Harbor IRAs Are Sub-Optimally Invested
4. Auto Portability Serves the Under-Served
5. Participants Overwhelmingly Want Auto Portability
