Resource Library

This RRC webinar included an in-depth discussion of how 401(k) core investment menus have evolved over the past decade, drawing on plan investment data from filing years 2013 through 2023.

In this all-access summary, we explore how investment expense ratios and fund quality have changed over the noted decade. There is credible evidence that investment management fees in 401(k) plans have declined significantly, especially among active investing strategies and those styles that had higher expense ratios a decade ago. Additionally, overall fund quality, defined as either the Morningstar Medalist Rating or the Morningstar Star Rating, has also generally improved over time.

In this paper, the third and final in our series, we explore how investment expense ratios and fund quality have changed over the noted decade. There is credible evidence that investment management fees in 401(k) plans have declined significantly, especially among active investing strategies and those styles that had higher expense ratios a decade ago. Additionally, overall fund quality, defined as either the Morningstar Medalist Rating or the Morningstar Star Rating, has also generally improved over time. Overall, these findings suggest that investments available in 401(k) plans have been improving, which may help further improve the retirement readiness of American workers.

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