Data & Research February 23, 2010

AARP: Americans 50+ Support 401(k) Fee Disclosure

A new survey from AARP suggests that—regardless of political persuasion—Americans age 50 and older want 401(k) providers to explain their fees.
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In addition, the survey respondents said they want to be able to check an investment adviser’s background.

AARP said its survey showed overwhelming support for a number of consumer protection initiatives, including: 

  • requiring companies that manage 401(k) retirement plans to explain the fees they charge to participants (Republicans, 93%; Democrats, 94%; and Independents, 92%);
  • enabling consumers to check an investment adviser’s record to see whether they have had any prior violations or been charged with professional misconduct (Republicans, 95%; Democrats, 89%; and Independents, 95%);
  • requiring investment companies to disclose the costs, risks, and benefits of all the financial products they market and sell using plain language (Republicans, 91%; Democrats, 91%; and Independents, 95%);
  • requiring banks to use plain language to explain the terms and conditions of loans, including mortgages, and credit card debt (Republicans, 98%;  Democrats, 95%; and Independents, 96%);
  • allowing states to enact consumer protection laws that are stronger than federal laws (Republicans, 68%; Democrats, 67%; and Independents, 66%);
  • holding financial salespeople who engage in deceptive marketing practices accountable (Republicans, 92%; Democrats, 89%; and Independents, 90%).

The survey was conducted by Social Science Research Solutions (SSRS) from January 14 to 24, among 815 respondents at least 50 years old.

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