When’s the last time you benchmarked your retirement plan?
Has it been more than 5 years? If so, you could be paying too much and could potentially save some money.
Today I’m going to talk about step 4 of The Ultimate 401k Advantage™ process, Benchmarking your Retirement Plan.
But first, let me ask you a question.
The real question is, how can you as a company that sponsors a 401k or 403b plan, turn your plan from a liability into an asset that gives you an advantage in the marketplace, and become a 401k superhero to your employees?
That is the question, and these videos will give you the answers. Hey I’m Jonathon Schultheiss and welcome to the Ultimate 401k Advantage videos.
The obvious benefit of benchmarking your retirement plan is the cost savings.
Over the last several years since the fee disclosure regulations came out, we’ve seen a major reduction in recordkeeper costs.
If you haven’t benchmarked your plan in the past 3 to 5 years, there’s a really good chance that you’re paying too much for your plan.
But step 4 isn’t just about benchmarking your fees and expenses. It’s also about benchmarking your plan design.
When you save money on your recordkeeping fees, you’re benefiting your employees, giving them potentially more money at retirement.
You’re becoming a 401k Superhero to your participants.
But when you benchmark your plan design, you’re seeing how you compare to your industry and your competitors. This information could help you recruit, retain, and engage your employees, and become a 401k superhero to your company.
When you benchmark your plan design, you start to see exactly how you can use your plan as an asset, not just a fiduciary liability. You start to see the business value of your plan, and how it can play into your overall business goals of recruiting and retaining talented employees.
In fact, just recently we worked with a company that was having trouble recruiting new employees. They were losing new recruits to their competitors and those recruits were telling them it was because of their 401k plan.
We benchmarked their 401k design and match to find that they were in the bottom 10% of their industry. We made some suggestions on potential changes based on benchmarking.
This is the true value of step 4.
If you’d like to learn more about benchmarking your plan and learn about all 5 steps of The Ultimate 401(k) Advantage™, then click on the link and download a free copy of The Ultimate 401(k) Advantage™, The 5 Step Process to Becoming A 401(k) Superhero to Your Employees, today.
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