In actuality, everyone with a retirement account, such as a 401(k) or IRA, pays fees. According to the 21st edition of the 401k Averages Book, the average employee working for a small business pays 2.22% per year in plan costs.
Additional Survey Findings:
- Impact of COVID-19: Survey findings also indicate that COVID-19 has had an effect on retirement savings, as 66% of those surveyed have changed their approach to retirement investing as a result of COVID-19, with 62% saving more for retirement as a result of COVID-19.
- Lack of Knowledge: Lack of knowledge about how their money is invested within their retirement account is another common theme, with 51% of those surveyed unsure of the breakdown of their investments between stocks and bonds.
- Investment Anxiety: Americans feeling anxious about their ability to afford a comfortable retirement. If they were able to go back in time, 84% would want to learn more about investing earlier in life, while 89% would want to invest more in retirement accounts earlier in life.
“As we have heard from our small business owner clients for some time now—and these survey results show—there is a worrisome trend in the financial services industry of investment professionals charging outsized fees,” said Scott Puritz, Managing Director of Rebalance. “Unfortunately, many hard-working Americans are not seeing the expected returns on their investments due to high fees associated with their 401(k) retirement savings.”
This online survey of 1,016 U.S. adults, age 45-75 and working full time, was commissioned by Rebalance and conducted by SurveyMonkey between February 3-6, 2021. The survey has a 3.17% margin of error and a 95% confidence level. All data is self-reported by study participants and is not verified or validated. Detailed findings are available by request.
Rebalance is a mission-driven, award-winning investment firm committed to offering premium, fiduciary wealth management services to everyday investors. The firm is at the forefront of providing consumers with a fundamentally different and better set of investment options: lower costs, endowment-quality globally diversified investment portfolios, and systematic rebalancing.
The Rebalance Investment Committee is anchored by three of the most respected experts in the finance world: Burt Malkiel, the world-renowned Senior Economist at Princeton University and author of “A Random Walk Down Wall Street”; Dr. Charley Ellis, the former longtime chairman of the Yale University Endowment; and Jay Vivian, the former Managing Director of IBM’s $100+ billion in retirement investment funds for more than 300,000 employees worldwide.
Rebalance is headquartered in Palo Alto, CA and Bethesda, MD and currently manages more than 600 clients with over $1 billion in financial assets. In 2018, Rebalance was honored by Schwab’s 2018 Pacesetter IMPACT Award™ for Innovation and Growth.
Contact: Linda Sperling
Dir. of Strategic Communications