Benchmarking helps keep your 401(k) competitive. Learn how comparing fees and features can help improve plan performance and value.
Many businesses set up a retirement plan and may rarely revisit how it compares to others in the market. Over time, this can lead to a plan that is outdated, overpriced, or less competitive than it should be.
That’s where plan benchmarking becomes helpful.
Benchmarking involves comparing your retirement plan against similar plans in terms of fees, services, investment options, and overall structure. This process helps identify whether your plan is delivering value—or if adjustments are needed.
One important areas to evaluate is fees. While all plans have costs, excessive or unclear fees can reduce long-term savings for employees and create potential concerns for employers.
Beyond fees, benchmarking also looks at plan features. Are your contribution options competitive? Does your plan include modern features like automatic enrollment or escalation?
Benchmarking is not about constantly changing your plan—it’s about help to ensure it remains aligned with industry standards and continues to provide value.
Employers who regularly benchmark their plans are often better positioned to make informed decisions
Conclusion:
Benchmarking helps keep your retirement plan competitive and effective. Regular comparisons help ensure your plan continues to meet both employee expectations and regulatory standards.