401K Plans: Hidden Costs & Lower Returns

New research uncovers a significant issue with 401(k) plans: many may be costing you thousands in retirement savings due to hidden costs and lower returns. A study of the 1000 largest 401(k) plans between 2009-2013 revealed that over half offered investment options with revenue-sharing arrangements, creating incentives that may not align with savers best interests. These arrangements can lead to higher hidden costs and weaker returns, impacting long-term financial health. Experts suggest employers clearly explain 401(k) options and consider paying administrators directly to reduce incentives for choosing funds that share revenue.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.