The Personalized Expense Ratio Calculator (PERC) walks investors through a five-step process to calculate and benchmark the real cost of their 401(k) plan. By displaying an “all-in” cost expressed as both a dollar amount and percent of assets, the PERC will help participants decide if they are paying too much for their retirement plans.
The calculator was developed in response to the Department of Labor’s fee disclosure rules implemented earlier this year. In order to utilize the calculator, participants need their third-quarter statement and the annual participant fee disclosure provided a few months ago.
“It’s crucial that plan participants understand the true cost of their 401(k) investments, because unnecessarily high fees will erode the value of retirement savings over time,” said Tom Gonnella, executive vice president of Lincoln Trust.
The calculator is available online.