Many Baby Boomers Unaware of Retirement Plan Fees

In its survey of 1,165 full-time employed Americans ages 50 to 68, 19% suggest that their fees are less than 0.5%, and only 4% believe they pay more than 2% in retirement account fees. Rebalance IRA notes that according to the recent 401(k) Averages Book, the average employee had various fees totaling 1.5% each year deducted from his or her 401(k) account. Among smaller plans, the highest fees averaged nearly 2.5%, and were as much as 3.86%.

According to the Rebalance IRA survey, respondents said they had an average return in retirement accounts in 2013 of 5.2%. But, Rebalance IRA notes the target benchmark indexes were up 9.5%, meaning respondents’ retirement investments underperformed by 4.3%. Yet, more than half of respondents (55%) report they were satisfied with their returns. Twenty percent of those surveyed did not know what percentage of their portfolio is currently in stocks or stock funds.

In addition, the study found 28% of full-time employed Baby Boomers surveyed are not actively saving for retirement.  Two-thirds (66%) describe themselves as either very anxious or somewhat anxious about their readiness to retire with enough money.

Forty-four percent of those surveyed said if they could go back in time, they would learn more about investing. Sixty-seven percent said they would contribute more to their retirement accounts.

Respondents participated in the study between September 12 and September 18, 2014. Detailed findings are available by request. More information about Rebalance IRA is at www.rebalance-ira.com.