Reducing Costs of 401(k) Plans with ETFs and Commingled Trusts
Francis M. Vitagliano,
Richard W. Kopcke and
Zhenya Karamcheva
Authors registered in the RePEc Author Service: Alicia Munnell
Issues in Brief from Center for Retirement Research
Abstract:
Increasingly, employers who provide their employees with a retirement plan are relying on 401(k) and similar defined contribution plans instead of defined benefit plans. As a result, participants are paying more of the cost of managing their pension plans, which can take a substantial toll on their retirement savings. Over a 30 year career, for example, an annual fee of 0.7% of assets reduces the purchasing power of a participant's balance at the time of retirement by more than one-eighth.
Pages: 7 pages
Date: 2010-07, Revised 2010-07
New Economics Papers: this item is included in nep-ure
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Published on the Center for Retirement Research at Boston College website
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