Control Your Plan Costs Reduce Plan Fees Plan administration and recordkeeping cost structures vary from vendor to vendor in the retirement plan industry. By analyzing vendors and utilizing more cost-effective options, employers can discover significant savings every year. A 1% reduction in retirement plan fees, can add up to 30% to the participant's account by the time they retire. Reduce Investment Fees Retirement research shows that passively managed funds, also known as index funds, are better long-term solutions. Large firms typically don’t offer low-cost index funds or add fees for using these funds. In actively managed funds, cost typically erodes performance of the manager. A 1% savings in investment fees can add up to 30% to the participant's account by the time they retire. Increase Contributions By educating employees on the importance of a retirement plan and the power of tax-deferred or tax-free investments, employees will likely become more involved in their retirement. A 1% increase in employee contribution can add up to 30% to the participant's account by the time they retire. By following these simple steps, by the time a participant retires they will have grown their account size by 94%. The Retirement Savings Drain The hidden excessive costs of 401(k)s Download Sign Up For Our Newsletter!