Proof that retirement help leads to higher balances
If your company offers employees investment help with their 401(k)s, you’ll want to use this info — to show them just how valuable that help can be.
Employees who sought investment help with their 401(k)s saw an average annual return that was 3% better than those workers who handled their accounts themselves.
That’s according to a recent study by Financial Engines and Aon Hewitt, which tracked more than 425,000 employee 401(k) plans over a five-year period (2006-10).
The study considered investment help as:
- putting an advisor in charge of managing an account,
- seeking financial advice online (through the provider’s website), or
- setting up target-date mutual funds in the account.
That 3% makes a huge difference. Example: Say two investors have $10,000 in their 401(k)s at age 45, and one investor opts to get investment help from 45 through 65. With the 3% advantage, he or she would have around $30,000 more in that account than the employee who opted to go it alone.
- Share on
Free Training & Resources
Further Reading
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
CFOs and benefits professionals can only do so much to influence employees to invest in a company 401(k) plan. So-called influencers are of...
There’s no need to panic if you or one of your staffers discover they’ve made mistakes with your company’s 401(k) plan.&nb...
A new proposed rule from the Department of Labor’s Employee Benefits Security Administration outlines how 401(k) fiduciaries must assess ...
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
The IRS has announced updated health savings account (HSA) contribution limits and high-deductible health plan (HDHP) parameters for 2026, ...
