Does your company’s 401(k) plan stack up with everyone else’s?

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Employers contribute $4,040 a year to workers' 401(k) plans on average -- how does your company stack up?

More than 97 million Americans have access to an employer-sponsored retirement plan. If your retirement savings is a portion of the $5.3 trillion invested in 401s, you may have wondered how your company’s plan — and the investment choices you have within it — stacks up to the competition. Let’s take a look.

That’s right on target, considering experts recommend saving 10% to 15% of your salary for retirement. About two-thirds of the 401 plans jointly analyzed by the Investment Company Institute and the Employee Benefit Research Institute offer target-date mutual funds. Known as a “set it and forget it” retirement investment, target-date funds include a mix of investments that automatically rebalance as you get closer to retirement. More than half of 401 participants are invested in target-date funds, according to the ICI and EBRI.

Let’s set the record straight: You are definitely paying 401 fees — between 0.20% and 5% of your balance, according to 401 analytics firm BrightScope, which says the larger the plan, the lower the fees. Although employers frequently cover a portion of the administrative costs, Callan’s research found that in 32% of plans, participants are on the hook for all fees.Your plan is required to send you a quarterly fee disclosure statement.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

$0 dollars from every single employer I've had. Both for-profit and non-profit.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines