401(k) fees continue to trend downward across the industry, driven by increased competition, wider use of low-cost investment options, and institutional pricing. Investment-related costs have declined across nearly all plan sizes, while advisor compensation has largely remained flat, with more plans seeing slight decreases compared to prior years. Overall, the data reflects continued pressure on providers to deliver more value at a lower cost.
That said, smaller plans are still paying significantly more than larger ones, and cost differences between providers can be substantial. In some cases, similar plans show wide ranges in total fees, reinforcing the importance of benchmarking. For fiduciaries, it’s not just about lowering costs—it’s about understanding where those costs come from and ensuring they align with the services being delivered.
Read more in Fred Barstein’s latest WealthManagement.com article, “Are Declining 401(k) Plan Fees Helpful or Harmful?”
