The media is constantly reporting on retirees who have poor standards of living despite actively participating in their employers 410k retirement plan. While their employers may have been well intentioned, plans with poor investment advice and strategies have left many retirees with far less income then they had anticipated. It makes any employers wonder if it is really worth giving their employees a retirement benefit at all.
Many employers have not yet considered an independent fiduciary plan for their employees retirement benefits including a 401K Plan. In addition to relieving employers from the majority of legal responsibilities, an independent plan typically offers unbiased investment advice solely in in best interests of employees, not mutual fund companies. This is the kind of advice that is necessary for employees to make prudent choices about their investments. If the employee wants riskier investments and the potential for a higher return it should be their choice.
The combination of poor investment choices combined with the extravagant fees charged by some firms that manage retirement options have left a bitter taste in some retirees mouths. There are other options where employers can chose an independent fiduciary plan with low fees that allows participants to actually realize the retirement income they expect. No company wants to be responsible for their employees losing a large portion of their retirement savings to high fees and poor investment options.
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