As of August 30th, 401(k) and other defined contribution retirement plans have been required by law to disclose their fees to their participants. But so far, the reaction has been underwhelming. According to a new study from the Plan Sponsor Council of America, just 2.3 percent of participants have chosen to change their asset allocations since receiving the new fee disclosures.
Only 1.4 percent of participants even asked questions about the fee information they received. A minuscule 0.6 percent chose to defer some of their salary at a higher rate, while none decreased their deferrals in light of the fee disclosures.
Nearly all the plan sponsors surveyed, a total of 95.9 percent, reported no changes in participant behavior as a result of fee disclosures. Still, that doesn't make the new rules a failure. Especially in something as important as saving for your retirement, it's always better to have more information rather than less.
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