401(k) fees are continuing to fall—and that’s a good thing. Increased competition, better pricing structures, and the rise of low-cost investment options are all helping drive costs down for plan sponsors and participants alike.
But focusing only on fees can be misleading.
One of the biggest blind spots in many retirement plans isn’t cost—it’s advisor oversight. Despite being one of the most important decisions a plan sponsor makes, the selection and monitoring of a retirement plan advisor often get far less attention than investments or recordkeepers. At the same time, roles across the industry are becoming increasingly blurred, making it harder to clearly define who is responsible for what—and who is truly acting in the best interest of the plan.
Without a clear understanding of advisor responsibilities, compensation, and fiduciary status, plan sponsors may be missing critical opportunities to improve outcomes—or exposing themselves to unnecessary risk.
As fees compress, the conversation needs to shift from simply paying less to understanding more.
Read more in WealthManagement.com:
“The 10 Biggest Mistakes 401(k) Plan Sponsors Make with their Advisor”
