Government report calls for national retirement dashboard
401(k) management system could simplify retirement planning
Managing your 401(k) accounts — even at multiple workplaces — could be about as simple as ordering takeout food if a federal government recommendation gets the green light.
The Government Accountability Office (GAO) has proposed the creation of a nationwide 401(k) dashboard, which will give users a single location for their 401(k) accounts and even organize the plans for people with multiple accounts.
“Participants continue to encounter challenges in managing and tracking their accounts as they move from one job to another,” read the GAO report. “However, federal action could mitigate these challenges.”
In its report, the GAO said Congress should grant the authority for a federal agency to create the dashboard, but it’s unclear when those wheels will go in motion.
And while it could be a one-stop solution for retirement planning, a former Carnegie Mellon University professor is not sure a dashboard will give 401(k) plan participants enough information to evaluate performance.
“Dashboards are better suited for cars and other items to make sure systems are working,” said Raul Valdes-Perez, CEO and cofounder of Benchmine, a tool that allows users to search 60,000 401(k) plans and compare them by industry, geography and asset size.
Stress and anxiety
The federal government and 401(k) plan holders could benefit from a tool that allows for comparisons and navigation, Mr. ValdesPerezsaid.
Such a tool would also answer questions such as: Where can things improve? What performance level can the 401(k) plan