A bit of good news after a horrible year.
The latest edition of the 401k Averages Book 21st Edition found that the average total plan cost for a small retirement plan (100 participants and $5 million in assets) declined from 1.23% to 1.20% in 2020, while the average total plan cost for a large retirement plan (1,000 participants and $50 million in assets) declined from 0.91% to 0.90%.
“Even as 401k fees continue to decline the industry saw new fee litigation cases explode in 2020,” Joseph W. Valletta, the book’s author, said in a statement. “This may be why many studies are showing a majority of employers are looking to review/benchmark their plan fees in 2021, while others are considering vehicles such as Pooled Employer Plans (PEPs). Fee benchmarking is an important piece of the 401k governance process and the Averages Book is designed to help employers and their advisors with this step.”
Published since 1995, the 401k Averages Book is the only resource book available for non-biased, comparative 401k average cost information. It’s designed to provide financial professionals with essential 401k cost information needed to determine if their 401k plan costs are above or below average. The 21st Edition of the 401k Averages Book is available for $95 and can be purchased by calling (888) 401-3089 or online at http://www.401ksource.com.