Case Study: Retirement Clearinghouse reduces retirement savings leakage with Simio simulation

Simio simulation shows effect of auto portability on retirement savings

Retirement Clearinghouse, a provider of portability services for retirement plans, faced the challenge of modeling the negative impact of small account cash-outs, known as leakage, when employees change jobs. They needed a dynamic simulation to illustrate the effect of their auto portability solution on this problem for their customers and the entire industry. They partnered with vendor Simio to create this tool.

Using Simio's discrete event simulation software, a model was built to mirror the millions of annual decisions made by retirement accountholders. The solution allowed Retirement Clearinghouse to run different scenarios, demonstrating that widespread adoption of auto portability could reduce small cash-outs by two-thirds, from $7 billion to under $2.5 billion annually. This would generate over $115 billion in new employer-plan savings, making the Simio model a powerful and flexible tool for both sales and industry analysis.

Retirement Clearinghouse

J. Spencer Williams

Founder, President and CEO