News

Saver’s Match Has Potential to Incentivize Retirement Savings for Lower-Income Americans

PLANSPONSOR's Remy Samuels reports on new research conducted by Boston Research Technologies and Retirement Clearinghouse on the Saver's Match program, which surveyed more than 3,000 retirement savers who would meet the qualifications to be eligible to receive a program matching contribution. Samuels reports on the survey's findings indicating that the program would incentivize more savings and could benefit minorities disproportionately. Samuels also points to findings that the program may face challenges in routing matching contributions to valid, qualified accounts, due to worker mobility.

Tapping retirement funds is a terrible idea

Writing in AOL / Yahoo Money, retirement correspondent Kerry Hannon informs readers about the pitfalls of prematurely cashing out retirement savings. Hannon turns to WISER Women's Cindy Hounsell, who counsels savers to utilize the Retirement Clearinghouse (RCH) cashout calculator to understand how much retirement savings they'll be forgoing if they make this unfortunate decision.

Federal saver’s match could spur 8.5 million Americans to save for retirement

Pensions & Investments correspondent Margarida Correia reports on the results of a new survey-based analysis of the Saver's Match program, which, consistent with recent research from EBRI, projects an 8.5 million net increase in retirement savers as a result of the initiative, which goes live for tax years following 2017. The survey was a collaboration between Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH) and surveyed over 3,000 savers and non-savers who could be eligible for a federal matching contribution under the program. Correia quotes BRT CEO and Co-Founder Warren Cormier on the positive behavioral impacts of the Saver's Match program revealed in the survey.

Saver’s Match Looks Like a Game-Changer for Under-Saved Workers

401k Specialist Editor-in-Chief Brian Anderson evaluates the new survey findings on the Saver's Match program, resulting from a collaborative effort between Retirement Clearinghouse (RCH) and Boston Research Technologies (BRT). Anderson reviews the survey's key findings and quotes RCH President & CEO Spencer Williams, as well as BRT CEO and Co-Founder Warren Cormier. Anderson emphasizes the disproportionate benefits from the Saver's Match that could accrue to minorities, terming the program a "boon for minority savers."

Saver’s Match provides big incentive for 401(k) contributions

InvestmentNews' Emile Hallez examines the 4/9/24 Saver's Match survey analysis released by Retirement Clearinghouse (RCH) and Boston Research Technologies (BRT), which "builds on research showing the provision's potential reach and effect on retirement security." Hallez turns to RCH President & CEO Spencer Williams, who states that the program "could have a multiplier effect, as it not only encourages people to sign up for accounts and contribute more but also makes them more likely to receive employer matches as well as the federal government match." Hallez also quotes EBRI's Craig Copeland, who authored a 2/29/24 EBRI Issue Brief that estimated the population of savers eligible for a matching contribution at 21.9 million.

How the Saver’s Match Could Kick-Start Financial Inclusion: Study

NAPA Net's Ted Godbout covers newly-released research on the Saver's Match program, noting that the survey (How the Saver's Match Could Promote Financial Inclusion: A Survey-Driven Analysis of the Saver's Match Program) was a collaboration between Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH). The survey confirms the significant public policy benefits that the program could have in leveling the playing field for lower income savers – particularly for Black and Hispanic workers. Godbout's piece quotes RCH President & CEO Spencer Williams, as well as with BRT's CEO and Co-Founder Warren Cormier.

Also featured in ASPPA Net

Corporate Adviser Podcast: Pot for Life around the world

In a podcast featured on UK-based Corporate-Adviser.com, host John Lappin discusses various international solutions for “small pots” (i.e., small balance accounts) that could be applied in the UK. Lappin turns to two AON consultants, who provide a country-by-country rundown on international best practices, with the U.S. and auto portability receiving mention around the 7:30 mark in the podcast. The show's guests also mention a “retirement clearinghouse” that operates the auto portability solution, which they characterize as being innovative, but still in the early phases of implementation.

Retirement Industry Weighs in on Auto Portability Regulations

As the comment period expires for the U.S. Department of Labor's proposed regulations on auto portability, the retirement industry has weighed in, as reflected in the following media articles:

• PlanAdviser: Chamber of Commerce, ERIC Ask DOL for Modifications to Auto-Portability Proposal
• PLANSPONSOR: Stakeholders Ask for Fewer Regulatory Mandates for Automatic Portability
• NAPA Net: ARA Submits Letter to DOL on Auto-Portability Proposed Regs and PTE (also featured in ASPPA Net)
• BenefitsPRO: ERISA group urges DOL to simplify its new 401(k) 'automatic portability' rule
• JD Supra: How DOL’s Proposed Automatic Portability Regulations Will Affect Defined Contribution Plans
• Business Insurance: ERISA Industry Committee calls for simplification of auto-portability rule
• Ascensus Washington Pulse: DOL Releases Proposed Regulations for Automatic Portability Transactions
• Morgan Lewis MLBeneBits: DOL Proposed Rule on Automatic Portability: Plan Fiduciaries’ Perspective