Reducing Costs of 401(k) Plans with ETFs and Commingled Trusts
Increasingly, employers who provide their employees with a retirement plan are relying on 401(k) and similar defined contribution plans instead of defined benefit plans. As a result, participants are paying more of the cost of managing their pension plans, which can take a substantial toll on their retirement savings. Over a 30 year career, for example, an annual fee of 0.7% of assets reduces the purchasing power of a participant's balance at the time of retirement by more than one-eighth.
|Date of creation:||Jul 2010|
|Date of revision:||Jul 2010|
|Publication status:||published on the Center for Retirement Research at Boston College website|
|Contact details of provider:|| Postal: Hovey House, 140 Commonwealth Avenue, Chestnut Hill, MA 02467|
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Web page: http://crr.bc.edu/
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