The Department of Labor's 2012 regulations requiring greater fee transparency have done little to improve boomers' understanding of the costs of their retirement accounts, according to a survey from Rebalance IRA.
More than 1,100 full-time employed investors between the ages of 50 and 68 were asked what they pay in retirement account fees. Forty-six percent believe they do not pay any fees, and 19 percent think their fees are less than 0.5 percent. Only 4 percent believe they are paying over 2 percent in fees.
The reality is that the average level of fees is 1.5 percent annually, according to the most recent edition of the 401(k) Averages Book, a non-biased compilation of plan fee comparisons.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
