401k Averages Book Celebrates 25th Anniversary with New Data Confirming Continued Fee Declines

Benchmarking insights show persistent downward pressure on investment and recordkeeping fees

BALTIMORE, June 11, 2025 /PRNewswire-PRWeb/ -- The newly released 25th Edition of the 401k Averages Book marks a major milestone for one of the retirement industry's most respected benchmarking tools. Now in its 25th year, the publication continues to serve as a vital resource for retirement plan fiduciaries, advisors, and service providers seeking clarity on 401(k) plan costs.

This year's book of averages confirms a continuation of an industry trend: both investment and recordkeeping fees are steadily declining, helping drive lower total plan costs for employers and participants.

"A quarter-century in, our mission is unchanged: deliver clear, objective data to help fiduciaries benchmark fees and fulfill their oversight responsibilities," said Joseph W. Valletta, CFA, co-author of the 401k Averages Book. "This year's edition reflects today's more complex fee structures and offers essential context for evaluating 401(k) plan pricing."

Key Findings from the 25th Edition

Investment Fees Continue to Fall

• Average investment-related fees decreased across all plan sizes, with reductions ranging from 0.02% to 0.12%, reinforcing the long-term trend toward lower participant costs.

Advisor Compensation Flat or Lower

• Advisor fees either declined or remained unchanged in all plan size scenarios, with an overall average drop of 0.01%, an indicator of increasing fee compression.

Smaller Plans Still Pay Significantly More

• Smaller plans bear a heavier cost burden. A $5 million plan averages 1.08% in total costs and 0.37% in advisor compensation, while a $50 million plan averages 0.76% and 0.16%, respectively.

Recordkeeping Fees Show Broad-Based Declines

• Many plan scenarios saw reductions in recordkeeping fees, in some cases by as much as 0.03%, reflecting ongoing pricing competition and transparency demands.

Wide Fee Disparities Underscore Benchmarking Importance

• In a notable example, total plan costs for a $1 million plan with 100 participants range from 0.87% to 3.56%, depending on provider and structure, highlighting the critical need for regular benchmarking.

What's Included in the 25th Edition

• 24 plan scenarios covering plans with 10 to 2,000 participants
• Updated fee benchmarks for investment, recordkeeping, and advisor compensation
• Infographics illustrating fee trends and per-participant costs
• Practical reference points for advisors, fiduciaries, and consultants

About the 401k Averages Book

First published in 1995, the 401k Averages Book (www.401ksource.com) is the only independent benchmarking book focused exclusively on 401(k) plan cost data. With 25 years of consistent analysis, it is trusted by thousands of industry professionals to benchmark fees, support fiduciary oversight, and inform plan decision-making.

The 25th Edition is available for $95 at www.401ksource.com or by calling (888) 401-3089.

Media Contact

Joseph W. Valletta, Pension Data Source, 1 443-901-7612, [email protected], 401ksource.com

SOURCE 401k Averages Book