Managing smaller retirement plans comes with a unique set of challenges for advisors. These plans often lack the economies of scale that larger plans benefit from, making it more difficult to compete while controlling costs. And with lower assets under management, they may also have limited access to institutional share classes. Advisors must navigate a complex landscape where fees can significantly impact both plan sponsors and participants — financially and legally.
The Fee Disparity Challenge
While fee compression has helped reduce retirement plan expenses over the years, smaller plans still bear a disproportionate burden, due in part to fixed costs being spread across fewer participants. For example, total bundled costs average 1.62% for plans with 500 participants and $5 million in assets, according to the 2024 401(k) Averages Book. Yet for a plan with 10 participants and $100,000 in assets, the average cost soars to 4.16% (more than double), potentially putting a heavier burden on both the business and its employees.
PlanFees equips advisors with innovative benchmarking tools to compare fees against similar small plans. This information can provide valuable leverage when negotiating with service providers and empower informed fiduciary decision-making.
Greater Fee Clarity for Smaller Plans
Navigating retirement plan fee structures can be challenging for small businesses with more limited resources. With various plan options and cost considerations, assessing the differences can sometimes become overwhelming. But with PlanFees, you can provide greater clarity and confidence for fiduciaries.
The Prism Total Fees Benchmarking report breaks down costs into clear, actionable components, including investment, recordkeeping, administration, and advisory fees. PlanFees generates detailed comparisons in minutes, allowing you to pinpoint cost-saving opportunities for small plans, present sponsors with clear, easy-to-understand data visualizations, and justify advisory recommendations with data-backed insights. Additionally, RFP Express, powered by RPAG, helps simplify the often cumbersome request for proposal process for smaller plans, saving you time and empowering you to negotiate more effectively to reduce fees.
Turn Fee Challenges Into Opportunities
PlanFees delivers the tools and insights needed to help advisors keep costs in line and demonstrate value, backed by accurate data. With our robust platform, you can turn the fee challenges smaller plans often face into an opportunity to strengthen trust with plan sponsors, produce better plan outcomes, and help safeguard the financial security of plan participants.
Benchmark better with PlanFees.
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