The Devil is the Details: Why Ignoring Benchmarking Could Cost You Big Time
Have you ever read all of the fine print?
I mean, it is everywhere.
It’s the first thing we have to click when we sign up for a new streaming service. It's on the side of the yogurt we ate this morning. It’s probably even on the bottom of this article.
The fine print is so omnipresent we have all learned to just ignore it.
But what if I told you, the fine print on your 401(k) plan may have just cost you and your company $350,000.
Not so fine anymore, is it?
The truth is, if you haven’t benchmarked the fees in your company’s 401(k0 plan in the last two or three years, it could be costing your company significantly.
Benchmarking can help you evaluate if your retirement plan's services and fees are competitive with other plans. This process can help you understand if your plan is designed to empower your employees, or if it's time to change providers.
Case study: I just completed this exercise for another prospect and discovered they were paying 66 basis points. After some due diligence, we moved them to another plan where they are now paying 16 basis points.
Collectively, that meant a savings of more than $350,000 for their plan.
When it comes to benchmarking there are a lot of questions and considerations as you weigh your plan against the competition including:
- What products and platforms are available?
- What services are available?
- Are there special concessions based on our plan size?
- What kind of technology or app is available to participants?
- How can this be integrated with our payroll system?
- Is there online account access?
- How safe is it? What is your cybersecurity?
- How much does all of this cost?
*Case studies may not be representative of the results of all clients and are not indicative of future performance or success.
The devil is in the details. Reading that fine print matters. You are an incredible human resources officer, and this isn’t your fault. You need to be focused on hiring, growth and taking care of your company from the inside out.
You deserve a team in your corner to handle all of the details from the outside in. You deserve an seasoned advisor that knows the questions to ask to help ensure that you, your company and your employees are receiving a comprehensive retirement savings plan.
Contact me for a free benchmark of your plan. Let's find your potential savings! (949) 777-0311 or firstname.lastname@example.org
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.