A frequent target of complaints among retirement plan account holders is the fees assessed on their portfolios. These charges can significantly reduce the size of a nest egg over a lifetime of investing.
Now the good news: According to new research, recordkeeping fees for defined contributions plans have dropped by nearly 10 percent since this time last year. What’s more, the dip is part of a decade-long trend.
The National Education Policy Center (NEPC) discloses these findings in its 2015 survey on defined contribution plans and fees. Now in its 10th year now, the study includes data from 113 plans, encompassing more than 1.4 million plan participants.
The report shows that defined contribution plan fees have dipped 46 percent since NEPC first conducted the survey. Just in the last year, the administrative charges have fallen by 9 percent.
This year, the median recordkeeping fee is $64 for each plan participant, as compared to $70 a year earlier and $118 in 2006. Fees have declined despite the fact that half of them are asset-based. Yet, over the last year, the report notes, Standard & Poor’s 500 Index gained 13.7 percent.