Your employer may cost you $100k in retirement savings

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Some U.S. workers are losing out on more than $100,000 in retirement savings thanks to 401(k) fees.

The company an employee works for makes all the difference. Over the course of a 40-year career, workers at some companies lose tens of thousands of dollars in 401(k) fees and earnings — sometimes more than double the savings lost by workers at other firms, according to an exclusive analysis of about 2,300 company 401(k) plans by FutureAdvisor, an online financial adviser.

Each year, 401(k) savers pay a percentage of their account balance toward administrative and investment-management fees, which are usually included in the calculation of fund expense ratios. As an individual’s account balance grows, so do the fees they pay.

When a retirement saver is just starting out, they usually pay less than $100 in fees a year since their balance is low, according to FutureAdvisor. But when the account balance reaches $50,000, annual fees more than triple to about an average of $355. And by the time a person is ready to retire, the fees can add up to several thousand dollars a year.

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