Eighty-three percent of 401(k)participants were found to not know how much they pay in fees and expenses associated with their plan, according to a survey.
The AARP survey, 401(k)Participants’ Awareness and Understanding of Fees, also found that more than half of participants don’t feel knowledgeable about the impact that fees can have on their retirement savings.
“Consumers need to get more informed and ask questions,” says David Certner, the organization’s legislative counsel and policy director. “In return, plan administrators are going to have to be more transparent and make the necessary information about 401(k)s readily available to plan participants.”
AARP says plan participants often find the investment choices their plans offer, as well as the fees and expenses associated with them, incomplete and confusing.
For more about capital accumulation plans, we’ve set up a special section called CAP 101, which discusses plan member communication and education as well as other topics. To see it, click here.
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