NEW YORK – Fifty years ago, Michael Harrington's classic exposé The Other America blew open the reality of widespread poverty in the United States, and while it paved the way for policies that have improved the lives of millions of Americans, the problem persists today. Today, Demos and The American Prospect are co-hosting a conference and launching an interactive data visualization to examine why proven solutions to poverty are going unheeded, leaving 46.1 million Americans in poverty in 2010.
American workers are being ripped off by excessive retirement plan fees — which may force them to work longer or live less comfortably in their golden years, according to a recent study.
For the average US household, the high fees drain about $155,000 from their 401(k) accounts over their lifetimes, the study found.
In one example highlighted in the study, a two-wage-earner household with a median income for their age group contributed an average of 7 percent a year to their 401(k) plan over 40 years.
Hmmm … 401(k) plans can help you save money for retirement, but they many also cost you more than you realize. According to a new study from research firm Demos, the average American couple pay nearly $155,000 in 401(k) fees in the course of building up their proverbial nest egg; wealthier couples could pay nearly $278,000. These fees can reduce 401(k) savings by an average of 30 percent.
With hidden 401(k) fees back in the headlines, financial advisers say that in many cases it just doesn’t pay to leave your money in these plans—especially once you retire or switch employers. Recent findings from Demos, a research group, include this zinger: hidden fees may claim 30% of your savings.
A recent headline in the Los Angeles Times managed to rile both supporters and detractors of the 401(k) plan industry’s opaque and often excessive fee structure. Citing new research, The Times asserted that “401(k) Fees Could Reduce Average Nest Egg by 30%.” There is definitely a problem. But that seems extreme.
Portability, ownership and innovation are three key features of 401(k) plans that make them worth keeping. That was the case laid out by Paul Schott Stevens at a "town hall" meeting in Los Angeles this afternoon. The remarks lay out a defense of the mutual fund-heavy savings vehicle even as the plans have come under attack for the fees charged by mutual fund firms.
There are more than 50 million Americans with investments in 401(k) and other defined-contribution retirement-savings plans. They’re about to be getting more information about the fees they pay.
By one estimate, it could be sobering news.
Retirement-plan administrators have to provide detailed information to employers by July 1 about the fees they charge. Employers have to share that information with workers in their plans by Aug. 30, and once a year after that. The charges include investment-related fees and fees for administering a plan itself.
The average American couple could pay nearly $155,000 in fees for their 401(k) plans over their careers, reducing their eventual nest eggs by more than 30%, according to a new report.
Do you know how much your 401k is costing you? I would wager not, nor have you ever asked your employer about costs or looked in fund documents to find out. Chances are, it’s far too much and it’s eating away your retirement nest egg.
Upcoming Labor Department regulations mandating disclosure of retirement-plan costs are long overdue. Even then (I haven’t seen the final version yet), they may be so bureaucratic that millions may ignore them.
A median-income, two-earner household will pay nearly $155,000 over the course of their lifetime in 401(k) fees, according to a new analysis by national public policy center Demos.
If you think your employer knows more about your 401(k) plan's fees than you do, think again. Sponsors of some 401(k) plans don't understand the fees they're paying toward plan administration, says a new report by the U.S. Government Accountability Office. The GAO reported on one case, in fact, where a relatively large plan underestimated its recordkeeping costs by $58,000. And more than 90 percent of plan sponsors don't use free tools the government supplies to help compare costs among 401(k) plan providers, the report says.