The firms that administer 401(k) plans for clients also have to make sure their own employees are ready to enjoy their retirement years.
Last year, we looked at the financial firms on our quarterly Best & Worst Broker-Dealers list through the lens of 401(k) plan ratings calculated by BrightScope. This year, Stifel Financial was the big winner, vaulting from last to near the top of this year's rankings.
The average rating for plans in the peer groups was about 90. The highest among the dozen firms we looked at was 88 and the lowest 71. That's an improvement on both ends over 2014.
BrightScope uses more than 200 pieces of data to rate 401(k) plans. It then ranks them within peer groups of similar plan sizes and industries. An algorithm runs thousands of simulations to predict how quickly a plan would get the average participant ready for retirement.
BrightScope also quantifies how much longer an employee would have to work to make up for the difference between their firm's retirement plan and that of the best in the peer group. (BrightScope has a full accounting of its system on its website.)
Take a look at the 12 Best & Worst Broker-Dealer 401(k) Plans for 2015:
12. JPMORGAN Chase & Co.
Rating: 71
Highest in Peer Group: 90
Additional Years of Work: 13
Lost Savings: $53,200
Plan Assets: $19.9 billion
Average Account Balance: $70,000
11. LADENBURG THALMANN
Rating: 74
Highest in Peer Group: 92
Additional Years of Work: 13
Lost Savings: $41,500
Plan Assets: $19.6 million
Average Account Balance: $83,000
10. LPL FINANCIAL
Rating: 75
Highest in Peer Group: 91
Additional Years of Work: 11
Lost Savings: $132,200
Plan Assets: $170.6 million
Average Account Balance: $46,000
9. RAYMOND JAMES
Rating: 76
Highest in Peer Group: 91
Additional Years of Work: 10
Lost Savings: $160,000
Plan Assets: $633.5 million
Average Account Balance: $66,000
8 (tie). WELLS FARGO
Rating: 79
Highest in Peer Group: 88
Additional Years of Work: 6
Lost Savings: $76,000
Plan Assets: $34.4 billion
Average Account Balance: $110,000
8 (tie). AMERIPRISE FINANCIAL
Rating: 79
Highest in Peer Group: 91
Additional Years of Work: 9
Lost Savings: $51,900 last year
Plan Assets: $1.4 billion
Average Account Balance: $120,000
8 (tie). CITIGROUP
Rating: 79
Highest in Peer Group: 91
Additional Years of Work: 9
Lost Savings: $21,100
Plan Assets: $10.7 billion
Average Account Balance: $75,000
5. UBS
Rating: 82
Highest in Peer Group: 91
Additional Years of Work: 7
Lost Savings: $98,600
Plan Assets: $2.7 billion
Average Account Balance: $140,000
4. STIFEL FINANCIAL CORP.
Rating: 83
Highest in Peer Group: 91
Additional Years of Work: 7
Lost Savings: $81,100
Plan Assets: $557.8 million
Average Account Balance: $91,000
3. MORGAN STANLEY
Rating: 84
Highest in Peer Group: 91
Additional Years of Work: 6
Lost Savings: $116,300
Plan Assets: $7.2 billion
Average Account Balance: $120,000
2. GOLDMAN SACHS
Rating: 85
Highest in Peer Group: 91
Additional Years of Work: 5
Lost Savings: $85,700 last year
Plan Assets: $6.2 billion
Average Account Balance: $200,000
1. MERRILL LYNCH
Rating: 88
Highest in Peer Group: 91
Additional Years of Work: 3
Lost Savings: 1
Plan Assets: $8.4 billion
Average Account Balance: $190,000
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