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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 Charles Schwab, consider yourself even more fortunate. Folks who participate in workplace retirement plans just rated Charles Schwab the best provider in the J.D. Power 2018 Group Retirement Satisfaction Study.
This is the first time that J.D. Power, known for its ratings, has rated group retirement plans like 401(k)s.
The recently released study evaluates the financial services companies that manage workplace retirement plans. Ratings were based on the responses of some 9,500 folks who participate in such a plan — that is, employees themselves.
J.D. Power measured plan 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 received a rating out of a total of 1,000 points. Top-ranked Charles Schwab earned a rating of 824, making it one of only four providers with a rating of more than 800:
- Charles Schwab (824)
- Bank of America Merrill Lynch (808)
- PNC Retirement Solutions (806)
- Vanguard (805)
The lowest-ranked provider, Paychex, earned a rating of 718. To see how other plan 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. Those fees are what 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.”
So, how would you rate your retirement plan provider on a 1,000-point scale? Let us know why by commenting below or on Facebook.