401(k) Fees May Cut 30 Pct From Retirement Balance [View all]

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401(k) Fees May Cut 30 Pct From Retirement Balance


(ABC News) American workers who don’t think twice about their employer-sponsored 401(k) plans may be surprised to learn that fees can cut their retirement savings by 30 percent over a lifetime.

A household with two people earning the median income of their age group from 25 to 65 will pay an average of $154,794 in 401(k) fees and lost returns, according to a report from progressive, non-partisan public policy research group, Demos, based in New York.

The $154,794 is 30.3 percent of that household’s retirement balance of $509,644 that is lost to fees.



The median 401(k) balance was a scant $23,000 at the end of the first quarter this year among Fidelity Investments’ 11.8 million accounts. ...............(more)

The complete piece is at: http://abcnews.go.com/blogs/business/2012/05/401k-fees-may-cut-30-pct-from-retirement-balance/