If you have access to a workplace retirement plan like a 401(k), consider yourself fortunate — and then make sure you are maxing out any employer matching contribution.
If you have a workplace retirement plan provided by Bank of America, Charles Schwab or Fidelity Investments, consider yourself even more fortunate. Employees recently rated them the best providers in J.D. Power’s 2020 U.S. Retirement Plan Participant Satisfaction Study.
The study rates the financial services companies that manage workplace retirement plans. This year, the ratings are based on the responses of more than 10,000 workers who participate in such a plan.
J.D. Power measures participants’ satisfaction based on six factors:
- Interaction across live and digital channels
- Investment and service offerings
- Fees and expenses
- Plan features
- Information resources
Each plan provider included in the study received an overall satisfaction rating out of a total of 1,000 points.
Large workplace retirement plans
Among providers for large plans, the average overall satisfaction rating was 765.
The three providers that earned the highest ratings for large plans — and their satisfaction ratings — are:
- Bank of America and Charles Schwab: 801
- Principal Financial Group: 789
Medium workplace retirement plans
Among providers for midsize plans, the average satisfaction rating was 770.
The three providers that earned the highest ratings for midsize plans are:
- Bank of America: 827
- Charles Schwab: 825
- OneAmerica: 800
Small workplace retirement plans
Among small-plan providers, the average satisfaction rating was 752.
Those that earned the highest ratings are:
- Fidelity Investments: 797
- AIG Retirement Services: 787
- Nationwide: 782
To see how other providers fared, check out J.D. Power’s charts.
Just note that in the long run, the fees you pay as a retirement plan participant are more important than the name of the company that manages your retirement plan or how you would rate the provider.
Those fees can rob your nest egg of tens of thousands of dollars — if not more — over the course of your working life. To learn more about retirement plan fees and how you can combat them, check out “Of All the Fees You Pay, This Is the Worst.”
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