Malvern-based Vanguard Group has partnered with Retirement Clearinghouse to introduce an auto-portability service for its 401(k) clients, writes Jeff Blumenthal for the Philadelphia Business Journal.

The capability enables 401(k) participants to move accounts automatically from a former employer to a present employer.

The investment management giant engaged the fintech company to provide plan sponsors using software specifically designed to simplify small balance 401(k) rollovers.

The Auto-Portability Service is expected to launch in mid-2022. It will be offered as a benefit to plan participants who are laid off, furloughed, or switching jobs and have previously accumulated small sums of retirement savings.

According to Vanguard, the importance of transferring 401(k) accounts has only grown as a higher number of workers are now part of a defined contribution plan.

The company’s annual “How America Saves” report states that, at the end of last year, 62 percent of all Vanguard participants were exclusively invested in an automatic investment program, such as target-date or a managed fund. This nearly doubled the 33 percent share at the end of 2011. The report also found that participants with smaller balances usually do not roll over their retirement savings.

Read more about Vanguard’s Auto-Portability Service in the Philadelphia Business Journal.