Fees

Clearly the level of fees plays a significant role in the quality of retirement outcomes.

In this example, we compare the retirement outcomes for a typical younger employee with three different levels of fees: high, moderate and low using the same market returns (7.5% pre-retirement and 6.5% post-retirement).  We calculate the total assets accumulated in the retirement plan and how long those assets will last.

  Balance at Retirement Years of Income Age Income Stops total Income
High Fee – 1.5% $1,285,504 12+ 79 $1,872,645
Moderate Fee – 1.0% $1,438,482 15+ 82 $2,262,099
Low Fee – 0.5% $1,612,841 19+ 86 $2,844,801

Typical Younger Employee

Age Income Annual Increase 401k Balance 401k Deferral Retirement Age Retirement Income
32 $75,000 3.0% $20,000 8.0% 68 $147,728

Learn more about how fees can affect your retirement today!

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