Looking for a new way to explain fee levelization?

We know retirement plan sponsors have many reasons to consider levelizing or equalizing 401k plan administrative fees. One of the most important is it can help enhance their fiduciary responsibility.

But here’s the problem – it’s not on the radar for some plan sponsors. Many advisors tell us even when plan sponsors know about fee levelization (a.k.a. fee equalization), they don’t always understand why they should consider it or simply find it too overwhelming.

Take a quick look at how advisors say plan sponsors react to fee levelization[1]:

  • Lack (plan sponsor) awareness – 59%
  • Don’t understand fee levelization benefits – 47%
  • Fear participant reaction – 43%
  • Service provider’s ability to implement – 24%
  • Too overwhelming – 14%

We can certainly relate. Fee levelization can seem overwhelming. And as you’ve likely experienced, these conversations can get complicated quickly. But you can help break it down for your clients … and simplify the concept. We created this short video to help.

Consider using it the next time you tee up a conversation about fee levelization with a retirement plan client or prospect.

Want a few more ideas in your back pocket?

Visit our website for whitepapers, non-branded presentations, case studies and other educational resources.

[1] Fee Levelization Advisor Insights Study conducted by Principal, July 2017.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, Iowa 50392.

©2017 Principal Financial Services, Inc.

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