As traditional 401(k) plans continue to fall short in closing the $4 trillion retirement savings gap, portable retirement plans (PRPs) are changing the game for both employees and employers in today’s flexible workforce.

The PRP is specifically designed to target small businesses and gig workers—the very groups the current retirement system has left behind. With 81 million Americans lacking access to employer-sponsored retirement plans, the PRP offers a simpler, more affordable solution that meets the needs of today’s dynamic workforce.

Traditional 401(k) plans are costly, complex, and out of reach for many small businesses, with only 30% of employers offering them and 60% eventually discontinuing them due to regulatory burdens.

The PRP eliminates these challenges, including the cumbersome rollover process required when changing jobs, which prevents the $100 billion in annual cash-outs and addresses the $1.3 trillion in lost or abandoned 401(k) funds.

Icon, a retirement technology company, is stepping up with a solution for today’s evolving workforce. The company recently announced a $9 million funding boost to accelerate the nationwide rollout of their PRP, which already has customers in all 50 states. Employees can seamlessly retain their accounts and continue contributing through new employers or independently, while Icon’s one-click rollover technology makes consolidating old 401(k) plans effortless.

We spoke to Icon CEO Laurie Rowley about why outdated 401(k) plans contribute to the $4 trillion retirement gap and how portable retirement solutions are changing the game for both employees and employers in today’s flexible workforce.

Instant Insights /

Rise of portable retirement plans for small biz & gig economy

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