With more confusion swirling in the employer 401(k) market – not to mention an American workforce with staggeringly low retirement confidence – advisers and consultants recommend employers play a bigger role as a fiduciary when considering administration fees and investment education.
The aging workforce, coupled with a disengaged population of younger workers, may be the root of the problem. Right now, there are over 60 million plan participants in 401(k) plans with a total of $3 trillion in account balances. Meanwhile, $30 billion in administrative and investment fees are being spent on an annual basis – costs that plan sponsors still may not understand, or be able to quantify. That presents a need for fiduciary intervention, according to Trent Grinkmeyer, a financial consultant with Grinkmeyer and Leonard Wealth Management.
