- Strength of Retirement System
- Retirement Plans: Workers’ Access
- Understanding Tax-Deferred Benefits
- Fees in Retirement Plans
- Retirement Policy Issues
- Participant Education
- More ICI Retirement Resources
Fees Pay for Valuable Services
All investments—including such retirement-savings systems as defined contribution (DC), defined benefit, or hybrid plans—involve fees and expenses. Among other things, fees cover the cost of investment management and services (including custodial, legal, transfer agent, and recordkeeping services) that are essential to the operation of retirement plans.
Research conducted by Deloitte Consulting LLC on behalf of ICI has examined the “all-in fee,” which is a comprehensive measure (as a percentage of plan assets) of administrative, recordkeeping, and investment-related fees paid by the plan sponsor, the participant, or the plan. The study showed that the median DC plan participant has an all-in fee of 0.78 percent of assets, with fees ranging from 0.28 percent for participants in the 10th percentile to 1.38 percent for participants in the 90th percentile. Larger plans tended to have lower all-in fees.