Investment manager TIAA is joining a new consortium tasked with helping America’s under-saved, minority and low-income workers improve their retirement outcomes.
TIAA announced Tuesday that it's joining Retirement Clearinghouse to participate in a consortium known as the Portability Services Network that's designed to help workers automatically move smaller amounts of retirement savings in 401(k), 401(a), 403(b), and 457 plans to their new employers’ plans as they change jobs.
“Forty percent of American families are at risk of running out of money in retirement, and the issue is even more dire for women and minority communities," Thasunda Brown Duckett, president and CEO of TIAA , said in a statement.
Duckett described the industry consortium enabling auto-portability as “an important step toward helping more Americans hold on to their money during their professional journeys, so they have the option to turn their savings into lifetime income when they stop working.”
Employee Benefit Research Institute estimates that approximately $92 billion in savings exits the U.S. retirement system every year because Americans who change jobs cash out their workplace retirement accounts and pay taxes and penalties on those cash-outs. EBRI says employees who have less than $5,000 in a retirement account tend to cash out at much higher rates than other workers who change jobs, making them the ideal focus of the auto portability service.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
