How Your Employer Could Be Losing You Thousands of Dollars
Employers might not be paying much attention to the fraction of a percentage point in fees that separate many 401(k) plan providers, but they should. Not only can this seemingly minute distinction chip away tens of thousands of dollars from an employee’s retirement savings and force the typical worker to work years longer than they had planned, but it can also cause many employers to essentially throw away between 15 and 20 cents of every dollar they intended to go toward their workers’ retirement.
To understand how this is possible, we must first unpack the real effect of even small differences in fees between 401(k) plan providers. At first glance it may not seem to make much difference if an employer offers their employees a plan charging 1 percent of assets annually — roughly the average among currently available plans — as opposed to a low-fee plan charging 0.25 percent. But over time these seemingly small differences add up to big money.
Read more here.
This article was originally published in Huffington Post.
To speak with our experts on this topic, please contact:
Print: Liz Bartolomeo (poverty, health care)
202.481.8151 or firstname.lastname@example.org
Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or email@example.com
Print: Allison Preiss (economy, education)
202.478.6331 or firstname.lastname@example.org
Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or email@example.com
Print: Chelsea Kiene (women's issues, TalkPoverty.org, faith)
202.478.5328 or firstname.lastname@example.org
Print: Benton Strong (Center for American Progress Action Fund)
202.481.8142 or email@example.com
Spanish-language and ethnic media: Jennifer Molina
202.796.9706 or firstname.lastname@example.org
TV: Rachel Rosen
202.483.2675 or email@example.com
Radio: Sally Tucker
202.481.8103 or firstname.lastname@example.org