Employers looking to switch plan providers can compare the costs of different expenses on up to three major recordkeepers through the new 401(k) cost estimator, released by ForUsAll.
Human resources and administration officials can feed the free tool their companies’ number of employees and total plan assets to get side-by-side comparison of fees for recordkeeping, administrative services, fund lineups and custodial expenses among three leading recorkeepers. The service also factors in ForUsAll’s advisory fee, which varies based on plan size.
Plans with up to $250,000 would be charged a $200-a-month employer fee and an advisory fee at .35% of assets. Plans with larger assets pay no employer fee, but are charged varying advisory fees.
ForUsAll says, “The goal is to provide transparency for anyone looking to switch plans so that they understand what they can save in time and money.”
Employers planning to offer a 401(k) for the first time can also use the tool to compare prices and explore the various fees and costs surrounding the administration of a retirement plan for its particular size of employees.
More information about the 401(k) cost estimator is available at ForUsAll.com
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An AARP survey shows that the vast majority (84%) of American
private-sector workers “strongly or somewhat agree” that officials
should back legislation to enable workers “to save their own money for
retirement.”
The survey of nearly 4,000 workers ages 18 to 64
included a significant oversampling of African Americans, Latinos/as and
Asian Americans. The survey finds strong backing across all races,
ethnicities and political ideologies for elected officials to clear the
way for employee savings initiatives. The total agreeing that lawmakers
should support positive legislative action includes 89% of Asian
Americans, 86% of whites, 83% of African Americans and 78% of
Latinos/as.
The study, conducted between last November and
mid-January, comes against a background of increasing interest in the
states in the state-based plans for private employers who do not
currently provide workplace retirement plans, AARP notes. Thus far,
seven states—Illinois, Washington State, Oregon, New Jersey,
Connecticut, Maryland and California—have approved various versions of
what AARP calls “Work and Save” programs.
But the research also
comes against a backdrop of controversial Congressional deliberations
over the future of state-based plans. The Senate is currently considering legislation that could have a negative impact on the state initiatives. The U.S. House of Representatives has passed resolutions ordering a halt of Department of Labor (DOL) rules about state-run plans.
“Our
survey shows that Congress’ actions to limit state flexibility to
address retirement insecurity are seriously out of touch with the will
of voters, who resoundingly, across party-lines, approve of these state
retirement initiatives,” says AARP Executive Vice President Nancy
LeaMond.
NEXT: Three-quarters of private-sector workers feel anxious about retirement.
The study found the overwhelming
backing (80%) of the state-based programs was reflected in racial and
ethnic breakdowns, which showed that 76% of Latinos/as workers, 81% of
African Americans, 84% of Asian Americans, and 80% of whites said they
“strongly or somewhat support” the initiatives. For each group, 7% or
less said they “somewhat or strongly oppose” the initiatives. Those
remaining said they “neither support nor oppose” the programs.
Three
in four private-sector workers (74%) say they feel “very or somewhat”
anxious about having enough money to live comfortably through their
retirement years. Just one-quarter said they are not anxious. Anxiety is
high among all racial and ethnic groups, with large majorities of
Latinos/as (76%), whites (74%), African Americans (73%) and Asian
Americans (70%) all saying that they are anxious they will not be able
to financially support a comfortable retirement.
Nearly half of
those surveyed, facing financial uncertainty, said they are struggling
to get by. Overall, 14% said they are having a difficult time, and
another 30% said they are just getting by. On the other hand, 16% said
they are living comfortably, and 39% said they are doing ok. Differences
emerged among the different groups on this issue: for example, 57% of
Latinos/as reported that they are just getting by or having difficulty
getting by, compared with 52% of African Americans, 39% of whites and
35% of Asian Americans.
The survey was conducted for AARP by NORC
at the University of Chicago between November 1, 2016, and January 16,
2017. It involved a large pool of 3,920 private-sector workers,
including robust samples of 1,077 African Americans, 802 Latinos/as, and
607 Asian Americans.